I bought a 3G iphone from AT&T online intend to give it my a friend of mine live in another country. I read many many posts but still confused with what I need to do before sending the phone out. My intention is to pay the $175 ETF on top of what had paid for the phone itself. I had to sign the 2yr contract when purchase the phone but I was told the phone was not activated. I had the phone in hand right now in a sealed box and was told I will need to call to activate. My confusion from reading the posts were the following: 1. Some said the phone is already activated. But the phone is in a sealed box how can it be? 2. In AT&T policy, it states that "If you do not accept your service terms and conditions and do not return the equipment within 30 days, you will be billed for the phone's full retail price, and you service will be canceled." Does this mean I will need to activate in order to accept the service terms and conditions? Does this mean if I send the phone out to my friend without open the box, I will be charged with full retail price instead of $175 ETF after 30 days? Do I have to open the box and make the phone call to "activate" the phone so I can later cancel the service and just pay the $175 ETF? 3. If I make the phone call to "activate" the phone then send the phone to my friend, will he still be able to unlock the phone? Thanks in advance!