I called up Verizon Global Services to have my phone unlocked, and they went ahead and flagged the phone for an unlock next time I sync with iTunes. I synced and it didn't present the unlock message. I tried using my AT&T SIM card and it told me the SIM was invalid.
When I called to have my phone unlocked, I was sent an email with new terms and conditions to be added to my agreement (screenshot attached). Included in these terms were the words, "Once unlocked, You may insert another wireless carrier's SIM Card (Other SIM Card) into the Global Phone to obtain service from that carrier." Also, there were numbered terms and one term was this: "4. You agree that these Terms and Conditions become part of your Verizon Wireless Customer Agreement and Calling Plan." I have repeatedly called Verizon Global Services to double check, and each time they've told me my phone is unlocked.
As I understand, it's now a material term of my contract that my phone will be unlocked so that I am able to insert a SIM card from another carrier (no list of supported or blocked carriers was provided) and have service from them. The message I receive when I insert my AT&T card is that it is unsupported and I need to use my original SIM card, which Apple's support document shows as meaning that the phone is not unlocked.
All of my conversations with Verizon representatives, up to and including Brenda Raney herself, have stated that AT&T SIM cards are not allowed to be used. I've asked the CSRs if the phone is specifically locked from AT&T, which they say it is, so then I explain that if it's locked then it's not unlocked. Nobody has been able to understand that "locked" and "unlocked" are mutually exclusive, except Brenda Raney. She took a different tone with me.
We are not going to unlock the phone to allow you to use it on a competing carrier network. My intent in escalating the issue is to initiate research into your particular situation to see what recourse we may have regarding your account but it will not end in our unlocking your phone. In the U.S. iPhones sold by carriers are locked to carrier networks. While Apple representatives may have shared information with you to the contrary, they are not authorized to speak for Verizon Wireless. Additionally, the comment in context [the policy stated on October 13th, 2011] means the decision by Verizon Wireless and all the U.S. carriers was one made prior to launch, which is true, it is not a comment that can be applied to a single device. As I've stated before, we do not unlock global phones in this country to use on competing carrier networks.
It is my understanding now that Ms. Raney (a Verizon spokesperson) is stating that the company is willfully refusing to comply with the term of the contract, as amended for customers with unlocked phones, that they be allowed to use SIM cards from third-party networks to use their phone in GSM mode. The last CSR I've spoken with has stated that Verizon's definition of unlock does not include domestic SIM cards. He told me that the only way I can verify that my phone is in fact unlocked, other than taking his word for it, is to travel to another country, purchase a SIM card, and insert it into my phone. The word "unlock" isn't defined anywhere in the original or amended contract, so the most likely definition is understood to be the definition used, that being the definition from the phone's manufacturer.
Verizon seems to be having enough issues with contracts being canceled due to the raising administrative and federal universal service fees. I would appreciate them unlocking my phone as the contract specifies. I've already reported this incident to the Better Business Bureau, and I would be thrilled to report that Verizon fulfilled their contract, but so far, their public relations spokesperson is stating the company's open refusal.