It turns out that the officially unlocked iPhone you bought for 649 Euros 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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