Looking To Unlock The iPhone 3G? Think Again. + Questions Answered!
If you were thinking about buying the new iPhone 3G at the store, taking it home, and immediately unlocking it, think again.
AT&T is setting up new policies for the iPhone 3G that are specifically aimed at curtailing unlockers. Their main change: all iPhone 3Gs will require activation at the store.
That's right folks, no more activating via iTunes in the comfort of your own home. In order to activate the phone, you'll have to come in to an Apple or AT&T store and activate your iPhone 3G.
"That's fine," you say "I'll just wait until the hackers find a way around that so that I can activate the phone myself at home using the carrier of my choice." Reuters brings news of a second policy that will curtail just that:
There would be penalties for users who do not activate the iPhone in the first 30 days, AT&T said, in a move aimed at reducing the number of customers who buy an iPhone and tweak the software so they can use it on another network.
No mention of what these penalties will entail, but I'm sure they'll certainly keep your credit card number handy and make you sign and agreement when you buy the phone that will allow them to charge a fee of their choosing if you don't activate your iPhone 3G with AT&T within 30 days.
Why the new restrictions? All of this is due to the new way in which AT&T is paying for the iPhone 3G: they will no longer be sharing monthly revenue with Apple for each iPhone 3G user - instead they're going to be paying Apple a subsidy upfront (hence the new "half price.")
This means Apple still basically sells the iPhone 3G at $400-$500 a piece and gets the money upfront, while AT&T loses money on every sale and needs to make up the money via subscriptions, which means AT&T is compelled to make sure every single iPhone 3G buyer signs up with AT&T. Therefore, new policies are being brought about to ensure that.
"Wait!" some of the quicker-thinking readers out there are saying. "What about the free updates?! Wasn't the monthly revenue sharing how Apple was able to justify giving all iPhone users free software updates and new features?"
Luckily, I'm able to bring you some good news on this front: word from Apple and AT&T is that Apple will still be counting the revenue from each iPhone 3G sold over the course of 2 years, so Apple will still be able to provide new software features without running afoul of "accounting practices" (now if only they would do the same with iPod Touch owners, instead of nickle and diming them with each update.)
Also, a very important piece of news for (legitimate, unlocked) current iPhone users (like me): the required two year contract for the iPhone 3G will replace your current iPhone contract, meaning that your 2 year timer will merely reset when you activate your new iPhone 3G, instead of extending your contract. Good news indeed.
Some are saying these new policies will cause murderous lines during release dates, with activation for each iPhone 3G taking 10-15 minutes each. Add to that the fact that the iPhone 3G is being released in 22 countries simultaneously with no online ordering, and you have a recipe for epic level line camping (and accompanying news stories.)
...You can look for me on the coverage of the Miami "The Falls" Apple store - I'll be the one with the blue and green sleeping bag and tent.
AT&T remains sole iPhone carrier in US, revenue sharing axed (Updated) [Ars Technica]
iPhone 3G Pricing and Activation Details: $30 Unlimited Data, Activated In Store Only [Gizmodo]
AT&T sees iPhone subsidy hurting earnings [Reuters]
AT&T to Offer Next-Generation iPhone on Its High-Performance 3G Network [AT&T]
Den Den Boy
Posted to Hot Stuff, In Your Pocket on 10 June 2008
· Comments (6)
Other stuff like this: Apple, AT&T, iPhone, iPhone 3G, unlock
Within one hour of its unboxing, The One became the undisputed ruler of Tiny's entire home. Buy this or despair.
You mean I'll have to leave my house and talk to a real person?! Don't they know I use my electronics to AVOID real human interaction?!
Thats right. . . but will it unlock have a look at this article on what there planning to protect the unlocking of new iphones. however in some countries its illegal to do.. read the comments
http://blog.ukphoneshop.com/mobile-phone-unlocking/so-you-think-youre-going-to-unlock-the-new-iphone-3g-think-again/957/
WELL I HAVE A QUESTION I NEED TO TAKE ONE TO VENEZUELA U KNOW IF IS ILLEGAL TO DO IT THERE OR IF I UNLOCK IT HERE I WILL BW ABLE TO USE OT THERE??
BLAH .
it seems most people assume that unlocking the iphone means they don't want to use ATT. i've had ATT for 10 years. i don't mind a 2 year contract...but come on i travel to 3rd world countries 4-5 times a year...do i have to carry 2 phones just to have a local number...what happened to technology???
If I buy hardware, I want to be able to own it, that is, to use its possibilities freely. I am willing to pay the price the hardware costs (of course after comparing). I hate when they cut off my access to my own property. There should be laws against this. Everyone who has an Iphone now, is actually renting it. I also hate when they try to trick me into thinking something is inexpensive, when in fact it is very expensive in the end (at least an additional 70$ a month for two years). I do not want to deal with ATT.