The dmca doesn't apply outside the US so you don't need to panic just yet.
Also, I assume that when people say view bought the iphone they mean bought it as a pay as you go handset, rather than on a contract. If it's on contract, then the TOS probably say you can't modify the software, which is fair enough and you're in breach of your contract if you do. Conversely, even if it is on pay as you go, and you did literally pay for the handset, that still doesn't mean you can expect it to work properly if you modify it to work outside it's approved environment.