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Unlocked iPhones Go On Sale Tomorrow


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The first independently verified product that allows Apple (AAPL) iPhones to run on networks other than AT&T’s (T) is scheduled to go on sale today — but not to existing iPhone customers.

The pricing and terms of sale were made public in an e-mail from iPhoneSimFree.com that was sent to registered bulk buyers on Sunday and published that evening by Engadget. Sales start at $1,800 for 50 licenses; 5,000 can be had for $125,000. A redacted version of the e-mail is pasted below the fold.

The plan is for the software is to be distributed only by iPhone resellers — companies that buy the cell phones from Apple, modify them before they have been activated with AT&T, and then sell them to customers who want to use the iPhone on GSM networks overseas or on another GSM network in the U.S. (e.g. T-Mobile). Prices for the modified cell phones have not been set.

People who are already using iPhones on AT&T’s network could, in theory, pay to have their phones unlocked, but they would still be obligated to AT&T for the rest their 2-year contract.

This distribution strategy was devised with advice of lawyers and seems designed to avoid — or at least off-load — the legal problems associated with unlocking a cellphone for money.

An exemption to the Digital Millennium Copyright Act
allows individuals to unlock their own phones, but does not
necessarily protect companies that sell the same service to
others.

iPhoneSimFree has arranged things so that it won’t be unlocking any iPhones directly; that transaction is carried out by the reseller, who would presumably take on any legal risk. Resellers will also have to deal with customers should future iPhone software updates from Apple interfere with the modified phones.

iPhoneSimFree.com is the registered website of a core group of six anonymous software developers who broke the codes that locked the iPhone to AT&T’s network. In demonstrations to Engadget and CNN, iPhones modified with iPhoneSimFree’s software seemed to have all their functions intact except for Visual Voicemail and Apple’s streamlined version of YouTube.

iPhoneSimFree’s e-mail is pasted below, courtesy of Engadget.

From: Orders iPhoneSimFree.com
Sent: Sunday, September 02, 2007 8:42 PM
To: [redacted]
Subject: iPhone unlocking - WE ARE NOW ACCEPTING ORDERS

Thank you for contacting us. We are now ready to take orders.
Iphonesimfree is the only pure software solution available for iphone
unlocking. Easy to market, easy to use as indicated by several
respected independent reviews such as:

CNN:
<http://edition.cnn.com/2007/TECH/09/01/apple.iphone/index.html>

Engadget:
<http://www.engadget.com/2007/08/24/iphone-unlocked-atandt-loses-iphone-exclusivity-august-24-2007/>

HOW DOES IT WORK?

The reseller or his/her customer must install on the iphone our
software, available by mail or through direct download from our site.
This is a standard .app file and once installed on the iphone it will
show up as a springboard icon on the main screen.

The reseller
must log into our back office and enter the required data specific to
that iphone (his license credit will be substracted).

Once
done, the reseller or the customer must run the .app, which will
communicate via the iphone wifi to our server. If the iphone has been
registered, the software will proceed to unlock the iphone.

It is that easy! In the unlikely case of any problem happening, we have a 24/7 hotline to assist our resellers.

WHAT IS THE PRICING STRUCTURE?

The minimum number of licenses you can order is 50 pieces. Minimum quantity and pricing are not negotiable.

50 licenses: $36/each
100 licenses: $34/each
250 licenses: $32/each
500 licenses: $30/each
1000 licenses: $28/each
2500 licenses: $27/each
5000 licenses: $25/each

IMPORTANT DISCLAIMER: WHAT GUARANTEES DO WE HAVE AGAINST FUTURE UPDATES?

We CANNOT guarantee that this software will work after any future
updates for the iphone. It does currently work on all firmware
versions, up to and including, 1.02. We will naturally try to provide
our resellers an updated version of our software for each firmware
update, it is in our interest, but we do NOT guarantee that we will be
able to do so.

WE ARE A TEAM:

Iphonesimfree.com is a
wholesale only company. Although we could, we do not and will not sell
directly to end users, because we want to work together with our
valuable resellers as a team and not interfere in their business.

HOW DO I PLACE AN ORDER:

We are now taking orders. The delivery date is Tuesday, 4th of
September. If you want to purchase a bulk of licenses please reply to
this email with:

- Number of licenses you want to purchase
- Company name and address (or Name if you are not a company)
- Name of the contact
- Telephone number (at least one)

You will shortly receive a proforma invoice with all the details on how
to complete your order. Payment is by bank transfer only.

THANK YOU, WE LOOK FORWARD TO YOUR ORDER.

Best regards,
Iphonesimfree.com sales team.


Written by Philip Elmer-DeWitt. Read more great feeds at is source WEBSITE
with no comments.
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