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Two or three years ago I could swap sim cards between my two phones,one Vodafone and one O2,neither handset was unlocked. Is this still the case,especially with the iPhone? Can you put a Vodafone sim into an O2 phone without unlocking it?
Also,if the phone has to be unlocked,does it have any detrimental effects to the phones software?
This depends entirely on how you bought the phone, if it came with a contract or PAYG package it will usually be locked to that carrier. If you bought the phone outright it usually won't. I don't know about iPhones, wouldn't touch one with a barge pole, but I suspect it will be locked just as with everything else.
Getting them unlocked also depends on the phone. Some can be done by following a few simple instructions available to anyone who can use google, others you'll have to pay for an unlock code. It's highly unlikely that removing the sim lock will adversely affect the operation of the device.
What he said.
I am told all phones sold by CPW are unlocked FWIW.