Apple selling unlocked GSM iPhone 4 at online store

Apple has began selling a GSM version of the iPhone 4 that doesn't require a contract with AT&T, making the handset available for the first time to T-Mobile users or those who travel internationally, where GSM is more common. The phone is currently available only on Apple's online store.

The unlocked device cannot easily be used on Verizon Wireless, Sprint Nextel or other CDMA-based carriers, since that requires a different chipset. Hacking the phone to use those networks, known as jailbreaking, voids Apple's warranty.

Without a subsidy from AT&T - worthwhile for the carrier since voice and data plans more than recoup the difference - the unlocked iPhone, available in black or white, costs $649 for the 16-gigabyte version and $749 for the 32GB version.

That's more than the cost of buying the subsidized phone at $199, jailbreaking it and paying AT&T's $325 termination fee to switch to another carrier, something the majority of customers won't do.

The iPhone isn't compatible with T-Mobile's standard data network. And switching from AT&T to T-Mobile could be irrelevant if regulators approve a merger that would make the combined company the nation's largest wireless provider.

There's no indication whether Apple will release an unlocked CDMA iPhone or a version that can switch between networks. The CDMA iPhone for Verizon began shipping in February.

The iPhone 5 is expected to be available this fall.

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