This post is for those that still have the original 2G iPhone and have not yet unlocked it.

Unlocking your iPhone will allow you to reduce the expense of your monthly plan. It’s especially geared toward those that have access to free wireless networks. Let me tell you about my experience with it.

Why unlock?

Purchasers of the iPhone are locked into an AT&T contract which requires a voice plan and a data plan. Some people, however, have no need for the data plan. Where I work, there are free wireless networks everywhere and I hardly use the EDGE network. Unlocking your iPhone allows you to remove this data plan. Alternatively, you could even use another carrier plan with T-Mobile. The beauty of unlocking is that you free yourself from the tyranny of AT&T. Note: you are still bound by a 2-year AT&T commitment so it doesn’t make sense to switch carriers unless your contract has expired.  After your AT&T contract has expired, unlocking your iPhone will allow you to use it with any GSM carrier.

Can my iPhone be unlocked?

All iPhones can be unlocked. You can either do it by software or hardware (purchase a SIM card). I will only refer to the free software unlock here. The iPhone 2G (original) has been able to be unlocked for a while and the process is mature. The iPhone 3G has only recently been unlocked. I advise against using the 3G iPhone unlock until the process has matured and been more fully tested.

Is it safe?

The iPhone 2G software unlock process has been fully tested by MANY people. As long as you completely follow all instructions (including knowing your firmware versions), you will be safe.

It does NOT affect your existing contract with AT&T.

What’s the drawback?

1. You will lose your visual voicemail feature (where you can select which voicemail message to listen to). Instead, you will just have the normal voicemail.
2. Email, internet, app store (anything that uses the data network) will not work unless you are connected to a wireless network.
3. The unlock is not supported by Apple. Therefore, there are unforeseen issues with future software upgrades. However, the unlocking software is continually being tested and upgrade options usually are taken care of.

How do I do it?

There are several software tools available. The 2 more popular ones are the Pwnage Tool and QuickPwn created by the iPhone Dev Team. I had the best luck with the Pwnage Tool but the QuickPwn tool was released later and should be fine too. I will refer you to nice unlocking tutorials with lots of pictures for Pwnage Tool and QuickPwn.

What do I do after I unlock my iPhone?

Purchasing your iPhone locked you to a 2 year contract with AT&T. Unless you break that contract, you are stuck with them. Once you unlock your iPhone, however, AT&T sees your phone as just any other phone allowing you to change the plan to whatever you want. Just call AT&T and tell them you have sold your iPhone and would like to drop the data plan. They can then switch your plan.
One thing I did (which i don’t know is necessary) is that when I called to downgrade my plan, I made sure my SIM was in a non-iPhone (borrow a friends or get a cheap free-after-rebate one). I told them I sold my iPhone and didn’t need the data plan.

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Good luck! Post if you have any questions. I unlocked my iPhone last year, several months after purchasing it. My monthly bill (after all taxes& fees) is $34.90 after using my FAN discount.

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