It turns out that the officially (Apple-sanctioned) unlocked iPhone you bought for 649 Euros (about US$965) from Orange in France � which, according to some reports, accounts for up to 20% of total iPhone sales in France � is not really unlocked. It retains a country lock, meaning the device will only allow use of SIM cards for carriers that operate in France. In other words, you can�t take your French, �unlocked� iPhone to Spain, the United States, or anywhere else, pop in a foreign SIM card, and make calls on a local carrier � you�re still stuck paying international roaming fees to your French carrier.
Attempting to use a foreign SIM card with one of these partially-unlocked phones will result in an inability to make phone calls, use SMS functionality, etc.
This is almost certainly a restriction imposed by Apple, loathe to see �unlocked� phones shipped from France to the US or other countries where exclusive contracts are in place with local carriers.
France is the only country where you can purchase an �unlocked� iPhone. In the US, UK and Germany (the only other markets where the iPhone is available), Apple holds exclusive contracts with AT&T, O2 and T-Mobile respectively. French law forbids the sale of one item that requires the purchase of another.
Purchasing an �unlocked� phone in France requires that you provide name, address, and iPhone�s IMEI number to Orange customer service, which will unlock the iPhone in about 5 days. A message will be sent to you, indicating that you need to restore your iPhone, at which point iTunes will inform you that your phone has been unlocked.
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