I recently visited our local AT&T store with my mom to look at new phones, since our contracts have recently ended. I have been using a 3GS for the last 2 years and she has been using a standard flip phone. I plan to get a new iPhone with a contract soon, even if it's just another 3GS, since they are selling it for $1 with a contract. My mom really needs a new phone; she texts a lot, but her keypad has been malfunctioning. The AT&T representative we spoke with brought up the idea that I could get a new iPhone for myself and give my mom my old one; thus, she could see whether she likes using a smartphone without being bound by a contract (but would still have to pay the $20-$30 per month for the smartphone data plan as long as she used it). She decided she really can't afford that extra $20-$30 a month and just mainly wants to call and text (though she has mentioned being interested in certain apps in the past), and there was seemingly no way around that expensive data plan if she wanted a smartphone. We still haven't gotten any new phones or committed to renewed contracts. Just now I read that AT&T recently began unlocking phones for out-of-contract customers without the need for any hacking software, which I was unaware of while I was at the AT&T store. The articles all mention that an unlocked phone can be used with any carrier. But I have what is perhaps an unusual question... AT&T is the only carrier with usable reception in our area, so we do not plan to switch carriers. However, IF we unlock my old phone, is it possible to avoid that extra $20-$30 per month by simply swapping in my mom's AT&T SIM card from her flip phone? Is that against AT&T's policy, to use an unlocked smartphone without paying for the extra smartphone data plan, or does the unlocking policy also free you from paying for the smartphone data plan on that phone? My mom has no need for any data service, and it seems to me that there must be a way she can just use my iPhone for talking and texting without having to pay for data she doesn't need. But does AT&T allow that for a phone that they have unlocked? The fact that the representative didn't mention the possibility of unlocking my phone before giving it to my mom makes me think that the unlock would NOT enable her to bypass the data plan, but who knows... If bypassing the data plan with an unlocked phone IS in fact against AT&T policy, will jailbreaking it allow her to use the phone for AT&T talking and texting without data? Or does AT&T have a way to detect that the phone is actually a smartphone? If so, what do they do when they detect it? I would ask AT&T directly about their policy, but I just worry about getting a straight answer from a company that is trying to push their smartphone data plans, which my mom has no intention of using either way. I have one more related question: If I must jailbreak the phone, am I better off NOT upgrading the OS first? I stopped upgrading mine long ago (if I ever did), so I still have an old OS. I'm not sure if this is the OS version, but when I go to Settings, General, About, it says "3.1.3 (7E18)" next to "Version". Is there a certain OS version that is optimal when jailbreaking? Thanks a lot!!! I appreciate any information about any of these questions. If nobody knows about the AT&T smartphone policy, I will eventually contact AT&T and post their response here.