Unlocking a 3GS, Help!

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So I was over the moon to get a 3GS for Christmas as I don't really use my phone much, but I always use my iPod. The problem was that whenever I actually wanted to use my phone about once a week, it was out of battery. Strange problem for a 16 year old I know!

Anyway, so the plan was to get a 3GS (this one is locked to 02), unlock it to work with T-Mobile and continue using my contract. So I get the untethered redsn0w jailbreak for 5.0.1 which is familiar ground for me after using an iPod touch for years, installed Cydia etc. with no problem. I then installed ultrasn0w to unlock the phone.

However, after installing it all I get is "Searching..." for ages until it tells me "No Service". I don't really know much about phones, but I've read something about a baseband- mine now appears as 05.16.05, but I don't have the slightest clue what a baseband is! Could this be why it's not working? The carrier is being shown as T-Mobile but I simply can't get a service!
 
Thanks, but I already have a contract with T-Mobile, I'm just basically upgrading the phone! Worked it out in the end, had to upgrade to an iPad firmware for ultrasn0w to be able to work! I'm now on 4.1 though!
 
Yeah, worked it out in the end, I'm now on 6.15.00 and iOS 4.1, would I be able to update to 5.0.1 again and keep the baseband?
 
He means you should request the phone be unlocked from O2 so you can use it on any network without having to keep the phone JB'ed. It's really not at all hard to do and is usually free.

So, whats the point of them locking it in the first place if you can just ask to have it unlocked? Very strange! May just do that!
 
So, whats the point of them locking it in the first place if you can just ask to have it unlocked? Very strange! May just do that!

If the phone was originally on contract then only after the initial contract period is over they'll agree to unlock it for free. If it was bought outright on PAYG then they usually charge a small fee.
 
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