Hi Donald, >From what I heard on the Today in iOS Podcast AT&T by now is fairly accommodating with unlocking older, off-contract phones. If you contact them and tell them you purchased this iPhone from somebody who upgraded to a 4S I don't see why they shouldn't be able to verify this and then provide you with the unlock instructions. Why they didn't allow the other person to unlock it I don't know, if it was last year when the 4S came out it may have simply been too early. I heard that for a while the AT&T customer service just was not trained enough to handle these requests efficiently, but from all indications this has not been an issue for maybe 6 or 8 months now.
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