The iPhone 4S will be able to roam onto foreign GSM networks, but only with the SIM card that comes pre-installed, which means that more networks will be available when people travel with their iPhones, but the owners will still be hit with international roaming fees and will not be able to swap in a new SIM to save money.

[arstechnica.com]

Joy!

that rumor lasted longer than expected

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Quote
Chakravartin
The iPhone 4S will be able to roam onto foreign GSM networks, but only with the SIM card that comes pre-installed, which means that more networks will be available when people travel with their iPhones, but the owners will still be hit with international roaming fees and will not be able to swap in a new SIM to save money.

[arstechnica.com]

I don't think ars has it right. From macintouch.com today, quoting a response direct from Verizon:


Yes, the iPhone 4S device can be unlocked to where you can use local SIM cards in it for local services whenever you travel overseas. You are not required to use a particular carrier in doing so. The iPhone 4S device uses micro-SIM cards instead of the standard-sized SIM cards so that is the only catch. Since more and more GSM-based phones use micro-SIM cards, you should not have a problem finding a carrier that supplies these types of cards.

All of our global phones are locked to where it uses our Verizon Wireless / Vodafone SIM card, however our global customers can opt to have their phones unlocked once they have met the criteria and agree to the Terms and Conditions for unlocking their phone and using another carrier's SIM card in their global phones.

To qualify for SIM (Subscriber Identity Module) Unlock, you must meet the following requirements:

- Must be a Verizon Wireless customer. Verizon Wireless only unlocks devices for VZW customers.

- The device being unlocked must be currently active on a Verizon Wireless line of service or have been previously activated on the same line in question.

- The line of service must be active at least 60 days.

- You may only have one SIM Unlock per line every 10 months.

- The line of service must be in good standing for the past 60 days.

- Unlock codes cannot be generated for prepaid accounts.

Good standing is defined as:

Balance must be current. (No past due balances for at least two billing cycles)

No Service suspensions or hotlines in the past 60 days.