It looks like the new iPhone 5 on Verizon Wireless in the US is GSM unlocked. The guys over at iDownload Blog managed to test this out with an AT&T microSIM card, which was cut down to fit the iPhone 5.
Verizon has confirmed that the iPhone 5 on their network is GSM unlocked, which means that you will be able to use the handset with another SIM card even when you are still under contract with Verizon.

Benefits of an Unlocked iPhone 5
This means that you would be able to use almost any Nano SIM card with your Verizon iPhone 5. This is particularly beneficial for frequent travelers who can now avoid expensive roaming charges by using local SIM cards in different countries. For instance, if you are traveling to Europe, you can simply purchase a local SIM card and insert it into your iPhone 5, allowing you to make calls and use data at local rates.
Moreover, having an unlocked phone increases its resale value. Buyers often prefer unlocked phones because they offer more flexibility in terms of carrier choice. This can be a significant advantage if you decide to sell your iPhone 5 in the future.
How to Use a Different SIM Card
To use a different SIM card in your Verizon iPhone 5, you will need to ensure that the SIM card is a Nano SIM, as this is the size that the iPhone 5 uses. If you have a Micro SIM or a standard SIM, you can cut it down to size using a SIM cutter or by carefully trimming it with scissors. However, be cautious while doing this to avoid damaging the SIM card.
Once you have the correct size SIM card, simply insert it into the SIM card slot of your iPhone 5. Your phone should recognize the new SIM card and connect to the network of the new carrier. If you encounter any issues, you may need to adjust the APN settings on your iPhone to match those of the new carrier. These settings can usually be found on the carrier’s website or by contacting their customer service.
You can find out more details over at iDownload Blog.
Considerations and Limitations
While the ability to use different SIM cards is a significant advantage, there are some considerations to keep in mind. Not all features may work perfectly with every carrier. For example, certain carriers may not support visual voicemail or LTE connectivity on the iPhone 5. It’s essential to check with the carrier to understand what services will be available.
Additionally, using a different SIM card does not absolve you from your contractual obligations with Verizon. You will still be responsible for paying your monthly bill and any early termination fees if you decide to cancel your contract.
The GSM unlocked feature of the Verizon iPhone 5 offers great flexibility and potential cost savings for users. Whether you are a frequent traveler, looking to increase the resale value of your phone, or simply want the freedom to switch carriers, this feature provides significant benefits. However, it’s important to be aware of the potential limitations and ensure that you comply with your contract terms.
Source Techmeme
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