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As for using other carriers, only GSM carriers can be used. There are two types of radios in cell phones: GSM and CDMA. Basically, everyone uses GSM except for Verizon and Sprint in the U.S. There are other minor carriers using it, but those are the two major ones. The iPhone has a GSM radio, meaning it cannot be used with Verizon or Sprint. Current iPhones can be unlocked to work with other GSM carriers, such as T-Mobile.
Version 2 of the iPhone software will probably break most if not all unlocking techniques, but the hackers will find their way back in. I assume Apple will let other carriers have at the iPhone after their contract with AT&T is up. With the success of the iPhone, other carriers will offer Apple a heck of a deal to have the iPhone.
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