New iPhone and a move to Sydney.

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I currently live in London and I am looking to get an iPhone, usually I'd just get a contract out with O2, but I'm moving to Sydney in September so contract is out of the question. I wanted to know if I got an iPhone on pay as you go here on O2 would I be able to use the iPhone with a new sim on a iPhone network when I get to Sydney? Is this a viable option, or is getting an unlocked iPhone a better idea?
 
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I would think the prepaid phone would be coded to only work on the network you bought it form.
 
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That's right - I'd go unlocked as you'd have to get it unlocked when you go over to Sydney anyway.

Where about in Sydney are you going?
 
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Thought that might be the case. Is it best to get hold of a phone and unlock it myself or get one of the ones which appears on ebay? Also, how is an unlocked iPhone affected with the new 3.0 software update? Are phones running 3.0 able to be unlocked and jailbroken? Same goes for the 3Gs when its released. will that be unlockable?

As for Sydney, not sure of the exact area I'm moving to, its a while away yet.
 

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