Crave

Tuan Anh Do shows off an unlocked iPhone 3G at one of his cell phone repair shops in Hanoi.

(Credit: Dong Ngo/CBS Interactive)

Editor's note: CNET editor and Crave contributor Dong Ngo is spending the next month in his homeland of Vietnam, and plans to file occasional dispatches chronicling his impressions of how technology has permeated the culture there. Click here for more of Dong's stories from abroad.

HANOI, Vietnam--Every obstacle presents an opportunity. I saw this firsthand in Hanoi.

Tuan Anh's shop on Nguyen Du street.

(Credit: Dong Ngo/CBS Interactive)

The obstacle in question: the iPhone 3G. Since its launch, it has proven a much tougher nut to crack than the original iPhone. Without a viable software-based unlock solution, the only way to make the phone work with any GSM carrier has been the use of a proxy SIM. Put this piece of very thin circuitboard in the iPhone 3G atop the carrier's SIM, and you can make calls and text on a new network.

(I did experience some problems using the proxy SIM, including short battery life, instability, and, most seriously, incompatibility with iTunes.)

Unfortunately, the recently released 2.2 software update, for now, has made the iPhone 3G impossible to unlock--unless you happen to be in Hanoi. Here, I met a man who takes the job quite seriously and gets it done the hard way, literally.

His name is Tuan Anh Do, and he's a 29-year-old businessman who owns five cell phone repair shops. A big part of his business is servicing the iPhone and iPhone 3G, and that often involves getting those devices unlocked at the hardware level.

One of his shops is on Nguyen Du street, a relatively small, quiet block in Hanoi. It's located in a typically narrow four-story house, with one floor serving as a reception area, and another holding the accounting department. The top floor is the workshop, where the magic happens.

Here I witnessed a brand new iPhone 3G getting its hardware unlocked and was really impressed. This is how it happened.

Unlock your iPhone here

(Credit: Kent German/CNET Networks)

Though there's no shortage of places to buy an unlocked iPhone, I haven't seen many wireless stores that specialize in selling them. But last weekend, I came across a store in San Francisco's Civic Center (corner of Larkin and Golden Gate) that does just that. Not only will the store sell you an unlocked iPhone with the activation of a new T-Mobile account--all for just $299--but also it will unlock your current AT&T iPhone for you. Since it was Saturday and the day after Independence Day the store was closed, so I didn't get the opportunity to inquire about how many unlocked iPhones they sell. But I would imagine they do a decent business.

iPhone 3G

(Credit: Apple)

Q: If I buy an iPhone 3G in one country, can we then terminate the contract and reactivate in in another country with a local carrier?
--HSquared

A: If you buy an iPhone 3G, no one will stop you from canceling the service and paying an early termination fee to AT&T. Yet it's unlikely that you'll be able to take the same phone to another country and reactivate there. If you were successful in unlocking it from AT&T, it would certainly be possible to use it abroad, but good luck on finding an operator what would be willing to give you service. Personally, I'm not optimistic that a carrier in any iPhone 3G country would activate a former AT&T handset, particularly when they can sell you one of their own. Of course, you could buy a prepaid SIM card, but not all carriers may support prepaid iPhone service (for example, AT&T won't). And don't forget that while all iPhone 3Gs around the world will have the same specifications, handsets will be "branded" for their country of use. In short, you could make this work but you'll spend a lot of time and money making it happen. Even if you buy a non-contract iPhone 3G from AT&T, you'll be spending a lot of money up front. Why not just buy the iPhone in your chosen country?

For more iPhone 3G questions, see our FAQ. And by the way, have you heard how Rogers' iPhone 3G plans don't include unlimited data? That's pretty outrageous, and I hope our Canadian friends get a better deal.

Q: I have the old iPhone, but I don't have a Wi-Fi connection and I can't receive EDGE where I live. Will the iPhone 3G give me a better chance of receiving EDGE?
- Mik

The original iPhone

(Credit: Apple)

A: The iPhone 3G won't increase your chances of getting EDGE if you don't get it already. Though cell phones do play a big part in your call quality reception, they won't dramatically increase your data coverage. Also, while the new iPhone is offering 3G, it doesn't offer an improved EDGE capability over the current model.

Q: I am a satisfied Sprint "Simply Everything" customer, but I'm an iPhone fan as well. I've read about software that allows you to unlock your iPhone, however, I'm afraid that if I unlock an iPhone and use it on Sprint's network, I'll lose functionality. Do you have any experience with unlocked iPhones?
--Sharon

A: If you unlock an iPhone and use it on another carrier like T-Mobile, you will lose the visual voice mail feature and the 3G support but the handset will operate just fine otherwise. The main caveat is any software updates from Apple will "lock" the phone again to AT&T, so you'll have to download those at your discretion. But in your case, Sharon, I'm getting ahead of myself. Even if you unlock the iPhone it will not work on Sprint's network because Sprint uses an incompatible technology.

Q: I have a cell phone with AT&T that is $40 per month plus an extra $10 per months for a second line for my son. Can I cancel my service and take over his second line? And if so, can I transfer my contacts and phone number to his phone? Can I just replace his SIM card with mine?
- Joan

A: The beauty of GSM phones is that you can transfer your phone number and your contacts from one handset to another simply by switching your SIM card. So if you ever want to use your son's phone as your own, you won't have a problem. Yet you won't be able to cancel your service without canceling his as well. Because his phone is a "second line," it can exist only if your service is still in place. So don't get any ideas about getting cell phone service for only $10 a month. Conversely, you could cancel his second line anytime you'd like but you you may be liable for an early termination fee for that second line.

Kent German, CNET's cell phones guru, answers your questions about cell phones, services, and accessories and reports on the state of the industry. Send him a question!. For past columns, check out the columns in the On Call archive

A liberated iPhone?

(Credit: Apple.com)

One of the most popular questions regarding the Apple iPhone asks whether Apple will sell unlocked models. So far, the consensus has been that such a move is unlikely, but much to our amazement, we noticed today that PureMobile.com, a online cell phone retailer, is touting unlocked iPhones on its Web site. It appears to be the 8GB version of the phone in black (is there any other color?).

Now before you whip out your credit card, we have to stress that PureMobile won't allow you to buy anything at the time of this writing. It only says the device is "coming soon." It also doesn't give a price, but shipping is $19 or $29, depending on your delivery speed.

Uh, excuse me? An unlocked iPhone that you could use on T-Mobile or any other GSM carrier? Needless to say, that blows the conventional wisdom out of the water. Not only would an unlocked version let too much control of the iPhone out of Apple's hands, but also we can't imagine that AT&T would be too happy with it, either. The carrier has spent a lot of money promoting itself as the exclusive provider of the iPhone. What's more, an unlocked phone would free you from the service contract that AT&T is requiring for iPhone buyers.

We're thoroughly skeptical that this is for real. PureMobile (a certified CNET retailer) was closed for the day at 3 p.m. Pacific time, so we couldn't verify any other details. As such, we advise you to take care before plunking down any cash. Also, it's important to note that an unlocked iPhone will be subject to the same peculiarities as all unlocked phones. You should be able to make calls without any problems, but without any carrier Internet settings, data features won't work out of the box.

Stay tuned for more. We'll be pressing our "refresh" button religiously.