O2 will now let you unlock your iPhone (but there are conditions)

So again, on the same day that Orange goes live with the iPhone, O2 (NYSE: TEF) suddenly (in my eyes anyway) has decided that you can now unlock your iPhone. However, there are some conditions:

Unlocking your iPhone

From 10 November, the iPhone can be unlocked for O2 customers in the UK.

Pay Monthly customers

Your iPhone can be unlocked at anytime free of charge. If you unlock your handset and place a non-O2 sim into it, you will still have to honour the remainder of the minimum term on your contract.

iPhone Pay & Go customers

For iPhone on Pay & Go, unlocking can take place 12 months after you’ve bought your iPhone for a one-off £14.69 fee which will be deducted from your airtime balance.

What do I need to do?

Firstly, complete the unlocking form – it will take up to 14 days for the iPhone to be unlocked and we’ll text you to confirm the unlock request. Then place a non-O2 sim into the iPhone and connect to iTunes via a USB cable. iTunes will confirm that the iPhone has been successfully unlocked.

So there you have it – you can unlock, but if you are in-contract then you’ll need to pay your way out of it – and if you are on PAYG, then you have to wait 12 months, and pay about £15. It’s not hugely restrictive, but, with many people on the 18 and 24 month contracts, its likely to be a while before they are going to be unlocking!