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I paid £499 for it. Not a subsidised phone.
This happens because of an agreement Apple have with the UK network carriers - they lock the phone to the network at the time of activation if you are in contract (which I was, having lost the original subsidised phone).
O2 won't charge for unlocking. But this locking is not properly advertised. I was about to put the phone up on eBay selling it as unlocked. This would have screwed up that sale. And as mentioned before, my dad is without mobile service for a few days
I think it's ridiculous for the Apple CSR to put this all on O2. It is the way the phone gets activated through Apple that is the problem. I agree the US mobile phone carriers are a lot worse.
Something isn't right here.
I too bought an iPhone from the Apple store in Regent St, London.
Apple had already confirmed that all phones purchased outright would come (& remain) unlocked.
I was on O2 at the time, I put my SIM in my i4 in store, set it all up and away I went.
That was in June (launch day) and I moved to Vodafone in July of last year. Got my VF SIM, put it in my iPhone-no problem and certainly not locked to O2.
In July of this year I moved to 3. Got my 3 SIM, put it in my iPhone and guess what?
Yep, it worked straight away.
So you put your SIM (O2) in your new iPhone, that was from an iPhone that had been on a subsidised contract (& would therefore have been locked to O2 in the first place) and your new iPhone became locked as per your original contract/SIM.
There is clearly something on your SIM/contract/agreement that locks your phone (whatever phone) to O2 and It's an o2 issue here, not an Apple one.