I had purchased a factory unlocked (legally unlocked by Apple) from a seller on eBay in Australia. It was brand new, the black 32 GB 3GS and all was good, but I noticed that with my AT&T SIMs card in there, the reception would fluctuate consistently between 3G, Edge, and then back to searching. Luckily, I got rid of it and purchased another one from Italy which I got this morning, and it looks like this one is flawless and perfect. No issues so far and enjoying it. Australia also sells factory unlocked ones, but I don't know if the one that I had was faulty or not. But very happy with the Italian one right now which I will keep for now.