US communications/phone law iPhone question

I understand that according to US law, mobile phones have to be offered with the ability to unlock them (probably at a cost, but whatever). So Cingular would be required by law to unlock phones if users requested it.

I was wondering whether this applies to phones at point of sale as well, or just afterwards. Eg: will a person be able - it would obviously cost more money - to buy an unlocked iPhone? Or will they only be able to get it unlocked after buying it?

Thanks in advance for any info.

The recent ruling was in regard to third parties unlocking the phones. The cell phone companies had argued it was circumventing their copy protection so it fell under the DMCA, but that argument failed and unlocking was given an exemption to the law.

I don’t know about the iPhone specifically, but yes you can buy unlocked phones in the U.S., both on eBay and at places like this http://www.220-electronics.com/ . The prices don’t look to be substantially greater, although you’d need to buy a sim card if you didn’t have one.

While I think one should be free to buy an unlocked phone, it doesn’t seem fair to get a reduced price phone as part of a two year contract, and break that contract early. How come the price for unlocked phones isn’t so much different? I had heard the iPhone was going to be nearly twice as expensive “off contract” (I am hoping to buy one off contract).

I don’t think there is any ethical problem in leaving the contract early. Most cell contracts involve some sort of provisions for this that probably don’t involve the cell phone companies loosing money.

Breaking the contract early in the U.S. generally means a substantial financial penalty, so the reduced price is only a bargain if you complete the term of the contract. If you decide, mid-contract, that you want to get a new phone, I believe you’re stuck paying the full list/off-contract price.