We just went through this at my house.
First question for you is do you already have an iPhone and just want to move it to a new provider? Or do you need to buy one? I’ve done both recently.
Case one: the iPhone 4 I already had.
Last fall I got the new 5 (my work pays for it and we have a pooled contract w/ AT&T) and AT&T happily unlocked my old 4 for me. I walked in to a nearby T-Mobile (because we already have a Family plan with them) and they handed me (for free) a Micro Sim and transferred my daughter’s number to the new micro SIM.
If you already have a phone w/ AT&T and have satisfied the contract (as I had) there is a web page where you can request the unlock and then you can take the phone wherever you like. Bear in mind “wherever” you like means Sprint or T-Mobile realistically because Verizon has a different (CDMA) network and so Verizon iPhones are not portable..and vice versa.
Case two:
You don’t have an iPhone and you want one, but not on AT&T.
We just did this this week. My husband has been watching Craig’s List for a factory unlocked iPhone 4S and found one slightly used in pristine condition for a good price ($350 – cash).
The cost if you buy a factory unlocked one (new) via either the Apple Store or Amazon is closer to $550 to $650. (Again, I’m talking about a 4S, not a 5)
Once you get a factory unlocked one (and that part, FACTORY unlocked is very important—you don’t want one that’s supposedly jail broken or with a dongle – because there are folks out there that are ripping people off with those—and they are likely to NOT work or be unsupported) you can shop around for a plan.
We researched it and stayed with T-Mobile. We have 3 phone lines for $99 – all have unlimited text, only the youngest daughter’s phone is limited to 500 min. of talk – the other two are unlimited talk & text.
My husband’s phone has unlimited, unthrottled 4G data. The other two phones we intentionally do not have a data plan for – the girls use Wi-Fi only. (Though of course talk & text always works w/ their iPhones.)
So in short –
1. Watch Craig’s List – be picky about who you buy from, expect to spend between $350 and $550 and it’ll be cash, upfront. Make sure it’s a FACTORY unlock, and it’s definitely preferably that they prove to you that it worked on another network or really truly was unlocked. (I, for example, took a screen shot of the “Congratulations your iPhone is unlocked” screen that appeared in iTunes). Make absolutely sure it wasn’t a Verizon phone—unless you’ve already decided you want to use it on Verizon.
2. Shop around for a provider, but know that you’re still a bit limited. T-Mobile is a good choice (depending on if they have good coverage in your area), and they’ll give you the micro SIM for free. We researched all different plans (including the Wal-Mart “Smart Talk” ones that use TMobile’s network) and decided on T-Mobile’s value plan. It’s a good price but doesn’t limit our data usage as much as the Smart Talk plans would have. (Look at the fine print – they REALLY throttle your data with Smart Talk)
Ways to save money:
1. Skip the data plan – just use WiFi. WiFi is pretty ubiquitous these days—so you could consider just getting a plan w/out data to save a lot of money.
2. Buy used. It’s cheaper than walking into the Apple Store and buying a factory unlocked phone.
One additional note – T-Mobile will also be getting iPhones to sell in about another month or two (April/May time frame is what we hear)—but without subsidies.
http://www.pcmag.com/article2/0,2817,2412948,00.asp