O2 in the UK need to provide carrier unlock for iPhones that are out of contract. Other operators do, including Vodafone & Orange and it is standard practise to let customers unlock other phones (even for a fee).

Apple are technically able to provide over the air unlocking and there is NO reason to prevent customers who have fulfilled contract obligations (monthly or PAYG) from properly using their phones.

Visit - http://support.apple.com/kb/HT1937 to find out more from Apple

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