Please explain how unlocked phones work?

[jaz]

Say if I were to buy an unlocked iphone--can I still text?Is wifi free,if not how do I get it?I read about some people who signed up for a carrier for 3g or something,but I thought unlocked phones didn't have a contract..?Etc etc.
I just need some help on understanding the whole concept,so detailed answers would be very appreciated,thanks.

[Invincible]

in terms of iphone unlock phones means it can accept any carrier or cellular network sim card.
if iphone is not factory unlocked then u have to unlock using jail breaking or unlocking software.
by default i think iphone accepts only at&t carrier.
in unlocked iphone u can use it to text, call, mail wi-fi will b free it depends on the router of wifi providing u services, there will b no service charges by carrier on using wi-fi
thats it.......

[canoe]

no you cannot