A colleague of mine at work got a gift of an iPhone these “Happy Holidays”. Well, that is not unusual, I’m sure a large number of people did. However, this person got an unlocked iPhone which can run on T-Mobile, their favorite cellphone network. Now this person was able to have freedom of choice of cellphone network, and freedom of choice is usually good.

Although I’ve mentioned unlocking as applies to GSM cellphones before, here is a quick primer:
First, almost all GSM cellphones are “locked” to the cellphone network which provides the cellphone. This is especially so when buying a subsidized phone on a contract. Basically the cellphone carriers are protecting their own interests. In the case of the first generation iPhone, it was locked to the AT&T network, so that AT&T would get the benefit of payments for the length of the contract. As Apple made agreements with cellphone networks in other countries, the iPhone in those countries would be locked to those cellphone networks.

Now specifically with the iPhone, which first of all had Research and Development costs to recoup, and secondly being initially a one of a kind phone, there was a lot at stake. Apple and AT&T wanted to protect their investment on one side, and numerous people wanted to be able to own an iPhone, especially in countries where it wasn’t yet available.

And so the iPhone became a prime target  for unlocking.