If you have been reading our post from yesterday regarding the latest Apple iPhone firmware v1.1.1 update you will know that there has been an ongoing debate about whether iPhones which had been unlocked for use with non-AT&T sims will still work after this recent software update.

Well, up til this moment, after lots of testing with various sims and many attempts to re-activate, many iPhone readers and experts now believe that Apple has managed to create a software update that is AnySim and iPhone Sim Free proof!? There is now also a video uploaded in Gizmodo, this video demonstrates the whole process of updating the software on an iPhone Sim Free unlocked iPhone. The verdict is… after software update, the activate iphone screen crops up and unless you have a valid AT&T sim & contract, it won’t be possible to activate it.

So what has iPhone Sim Free got to say about this? The below is what I have found on their homepage, published just today:

Q. Why do you say it is unlocked if you can’t activate a non AT&T sim?
A. There is a difference between unlocking and activation. Unlocking is related to GSM standards and allowing a sim to be used on different carriers, and activation is something made up by apple to further restrict their users. After upgrading to 1.1.1 the radio of the phone is still unlocked, meaning it can still connect to other carriers, but apple requires the phone be activated to do so.

Q. How do you know it is unlocked if you can’t activate?
A. There are several ways to know this. Firstly, the phone does not report “Incorrect SIM”. Secondly the IMEI is correct. Thirdly if you bring up the field test, you can see the provider is not AT&T. And finally (and coolest of all), there are ways to actually call out and receive calls from the emergency call screen. If you can get the baseband to crash (we do it by calling some emergency numbers with no sim in place) and then insert the non AT&T sim, it can pick up a signal and calls (non-emergency) can be placed and received from the emergency call screen on the non AT&T carrier.

Q. Why does all this matter, if I can’t yet use a non AT&T sim?
A. A few reasons. Firstly the phone can still be used by AT&T users after upgrade. Secondly, if apple has patched the methods used to perform the unlock, as long as an activation method is discovered, the phone will work perfectly on other carriers. With other unlocking solutions, if you were to upgrade the phone it would currently be a brick, and if apple has patched the methods to perform the unlock, it would also stay a brick forever..

So it seems now they finally tell us what the word ‘unlocking’ actually means… yes, I suppose they are correct in that third Q & A, iPhones sim unlocked and upgraded with the latest update can still be used by AT&T users… in other words… if you now went to AT&T and took out a new contract you’ll be able to bring your iPhone back to life, but as for now foreign sims will need to wait and pay close attention to hacks that may appeal to crack the latest Apple update.

[via Gizmodo, iPhoneSimFree.com & Mobile Phone Reviews]