• It means your iPhone will be useless until you arrange some kind of service. Presumably such an iPhone would be unlocked - so you'd be able to connect to most if not all carriers. And you would not have to be tied to a long contract. Since I use a basic prepaid phone that only costs peanuts, I really know nothing about this. Standard Answerbag disclaimer applies.
  • It means you buy the phone upfront and you can hook it up to any network you like. You can even use it on a pre-paid basis if you want to. So, no, there aren't any monthly fees unless you sign up for a plan down the line.

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