Huh, it doesn't seem like you all got to the heart of my concern. I understand the rules, and also the technology differences between GSM networks (namely the frequency differences between At&t's 3g network and T-mobile's) and the iphone's limitations there... We all do crazy things sometimes with our unique needs, so you know, there may be a reason to be with t-mobile instead of at&t (don't care about data speeds and want to spend less money).

What i am wondering is why the phone has to be restricted/locked to At&t's networks if the person who bought it is in contract to pay the full two years. They are required to pay regardless of what happens with the phone and how it is used. At&t will still get all their money for the phone and contracted plan... so what do they gain by keeping the phone locked to them?

As far as giving it away, with the iphone it is locked to a particular user unless the original owner goes through an extensive transfer process to make the switch to another at&t customer. it is impossible to give an iphone that is still in contract to someone on another carrier, because At&t won't unlock an iphone until its 2 year contract is up... my question is why? what do they gain by imposing this limiation? Whether the original owner keeps, sells, or gives away their contracted phone, they still have to pay all the money.

thanks