AT&T Blocks Unlocked Phones

UPDATE DECEMBER 14, 2007

After replacing a brand new unlocked Motorola V3 [GSM] phone with another brand new unlocked Motorola V3 [GSM] phone, I put my wife's AT&T SIM card in it, and had the exact same result as in my previous post. The phone would send and receive text messages, but could not make nor receive phone calls. I spent about an hour with a very helpful person in AT&T Technical Support. He very patiently tried numerous experiments to attempt to coax telephone service out of the new unlocked phone. After trying everything he could think of doing, he escalated the issue to Engineering for resolution. I could expect a call within three business days. Before hanging up, I asked if AT&T had started blocking unlocked phones to prevent fraudulent access. He thought that would not be necessary, because AT&T has to program the SIM card with their customer's account information to work in a compatible cell phone. No phone -- AT&T branded or unlocked compatible -- without a valid account and SIM card would be able to use AT&T wireless service.

Less than an hour later, my wife received a call from AT&T explaining that AT&T DOES NOT ALLOW UNLOCKED CELL PHONES ON ITS CELL PHONE NETWORK, in order to prevent fraudulent access. Unfortunately, paying AT&T Wireless customers no longer have freedom of choice. Caveat emptor.