
Acquiring the iPhone
So a while back I was lucky enough to acquire an unlocked iPhone 2g for a killer deal from a good friend who upgraded to the 3g. I decided there was no way I was going to pay the $65/month voice & data + 2yr contract service plan just to have and use the world’s best phone. So naturally, I started searching for alternative ways around this awful money-pit.
Jailbreak + Unlocking the iPhone
I first jailbroke my iPhone using Quickpwn, the popular DIY easy jailbreaking application. But I soon found the mac version of Quickpwn doesn’t incorporate the steps to unlock the phone. I instead needed to use iPhonePWN (for mac) to unlock the baseband on my iPhone. Unlocking the baseband enables me to use virtually any GSM enabled SIM card in my iPhone to send & receive calls.
The GoPhone®
Once my baseband was unlocked, I promptly drove down to the local AT&T store, and bought a $25 Pay-as-you-go GoPhone card (which comes with a new SIM card) and had them port my previous Verizon phone number to the newly acquired GoPhone account.

To be safe, before activating my GoPhone account, I downloaded the iPhone app Boss Prefs in order to disable the Edge capabilities of my phone. We don’t want it pulling data down for 1¢/kb and sucking up my $25 card. I popped in the new SIM card, then activated my account and VOILA! Sending & receiving calls on my iPhone with a pay-as-you go card! The one catch – no visual voicemail. That is activated through AT&T’s iPhone only service plans.
The Skype Plan
In order to take this one step further, I decided to see if my GoPhone — iPhone GoPwn could use the Medianet® service offered to regular GoPhone customers. Hoo boy! Full internet access for $20 per 100mb — not bad. Now I can use my edge again… This would never be sufficient for tethering to my laptop, but just enough to browse the web and reap the many benefits of an edge/3g enabled iPhone.
SKYPE!! So next I downloaded the newly released Skype app. It works brilliantly! Skype to Skype calls with the iPhone are no problem! There was one catch… Skype app is limited to WIFI networks only. So I downloaded the jailbreak app VOIPover3G and this tricks Skype into thinking the phone is always on WIFI. I bought a Skype number for 9 bucks and an unlimited Skype callilng plan to get inbound and outbound calls to any phone for $3/month.
Skype calls on the Edge data network are just fine and use hardly any bandwidth. I also downloaded the jailbreak app Backgrounder so I can keep my Skype app running while the phone is locked & in my pocket.
Conclusion
That’s my story! I will keep some credit on my GoPhone account for emergencies, or occasional lazy moments, but besides that just a $20 refill for the data plan, with a little extra work using the Skype app, and I save myself a bundle using mobile VOIP!
++Extra Bonus — No contract, I can just stop paying if I need to!
My next goal is to somehow tie this in with my Google.com/voice account!

Update… April 23rd 2009
After about a month of using this setup and the enormous popularity of this post, I decided to follow-up and address some of the questions that have been asked.
Does this really work?
Yes, this works. That’s why I wrote about my experience.
Is this for me? Can I do this to my iphone?
No. This is not for everyone. It is certainly not a fully functional, flawless method of using an iphone for $23/mo. If you are however somewhat tech savvy and willing to take some extra steps to save some money and you happened to get a contract-free iphone like I did for $80, then go for it.
What about Skype how well does that work?
Skype works as it should (over WIFI). I have heard stories of it crashing frequently on jailbroken iphones. This has not been the case for me. I am on iPhone software 2.2 (5G77) and it has worked fine. However, Skype over Edge has been a different story. While it does work, it has it’s issues. For instance: Connecting a call can take anywhere from 10 to 20 seconds. 1 out of 5 or 6 times the call is disconnected. There is a little lag between calls from VOIP to Voice and sometimes application lag. Also, Skype will not continue working when changing networks. For example, when leaving a WIFI and switching to Edge the Skype application must be relaunched in order to send or receive calls.
What about battery life with Skype running 24/7?
The battery life has been fine for me so-far. This is likely due to the fact that I’m a graphic designer and I have the luxury of leaving my phone plugged in for at least 4–6 hrs a day.
Is the 100mb/mo sufficient?
The 100mb MediaNet is a service from goPhone for the price of $20. This data expires after 30 days. I am around a WIFI probably 80% of my day. So the other 20% of my life I’m not on WIFI, I regularly checked my email, looked up maps, made calls and watched the occasional video. I used about 65mb in 30 days of usage. This 100mb would never be sufficient for tethering, but it works just fine for all the iphone apps which call for internet usage.
What about SMS?
If your feeling ambitious, there are several iPhone apps that let you send free text messages VIA data. They have their drawbacks (unable to reply sometimes, and having to check a webpage for incoming messages… The other solution is to use Skype’s SMS service, but they have their own fees which aren’t much better than AT&T’s SMS plans. I am not a huge texter so I have just been buying blocks of SMS messages on my GoPhone account — $4.99 for 200 messages.
171 Comments
The future is now!
Holy cow!
This is your best post yet. I think this has Digg/Stumblupon written all over it.
I need to do this. My iPhone bill is ridiculous.
One question: can I pwn my iPhone if I have the latest firmware? It seems like every time I jailbreak, apple updates the firmware and the jailbreak gets broken (haha.) What a vicious cycle!
–Kirk
I think most of the developers skipped the 2.2 jailbreak and went straight to 3.0 beta development. There was an “unofficial release” (quickpwn.com) but there has been bad reviews of the stability and support so far. There should be another release for 2.3 before 3.0 but you might just have to wait until June!!
This is GREAT!! I’ve been thinking of ways to use my iPhone 2g and an very excited to try this out.
Good thinking! But you paid too much for skype. I got 1 full year of unlimited service with a skypein number (wich you can even choose) for $57. I installed on a old Windows Mobile phone and that’s all I need to run my offi ce.
You are a god/goddess.
Lost credibility at “…just to have and use the world’s best phone.” Not the best phone, a nice one but not the best.
on to next blog…
@G, I bet you’re unable to read most blogs…
Seriously, great post.
lol thanks Patrick!
Interesting, I didn’t think VOIPover3G worked with the 2G iPhone. What you have set up is pretty cool! I’m too big a fan of tethering to set something up like this myself.
Seem to be getting an error back when I post comments, but the comments are still showing up?! Might want to look into that.
iphones are for nerds and squeeky geek herding nerd birds, like pocket protecting seagull flocks and clocks with?.. wrist watch calculators and NEs emulators squeaky seal bocks knitted socks and pop rocks, I’m a seventh level sword master all your iphone are belong to me now, your iphone GPS all got ya lost in Moridore and you’re like “my legs are sore” rotten apples. something like “Apple products suck”
You are an amazing person.
What about SMS messaging?
HAHA! This article was so funny! At one point you say: “…just to have and use the world’s best phone.” I have never herd someone rate so highly the steaming pile of dog crap that is the iphone. Silly 4/4/09 wasn’t April Fool’s Day.
@Jason Great question! SMS is another snag to this deal. If your feeling ambitious, there are several iPhone apps that let you send free text messages VIA data. They have their drawbacks (unable to reply sometimes, and having to check a webpage for incoming messages… The other solution is to use Skype’s SMS service, but they have their own fees which aren’t much better than AT&T’s SMS plans. I am not a huge texter so I have just been buying blocks of SMS messages on my GoPhone account — $4.99 for 200 messages.
@jimbob I don’t hear you listing other phones that can do anything remotely close to this.
Good lord the lengths to be a cheap bastard.
I am surprised I didn’t read “I use open wifi spots to text my friends my moms home number to them so I can sneak in the kitchen and talk to them for free.
Then we go to the theater and one friend pays, then opens the emergency exit door so we get in, then we collect popcorn from the floor and an old bucket, then we take that popcorn bucket up to the front and say this popcorn is cold and aweful I demand two buckets of popcorn for free
mwa ha ha, the world is mine!
starbucks swilling crock of apple disksplashy
You sir are an inspiration. I was trying to figure out how to do this before I got an iPhone.
I’ve actually been thinking of doing almost the same thing with a Nokia E63 or similar. I’m around wifi networks most of the time, so I might use Skype wifi when available, and T-mobile prepaid at ~8.5 cents per minute when not. Then google voice to forward all calls through a single number. That still leaves some kinks to work out, so maybe I’ll look into MediaNet and Skype.
Theres nothing wrong with being cheap, someone paying an average of $70–80(taxes and fees and all added onto the $65) a month looks almost stupid when compared to this.
what you saved in money you wasted in time, energy and fuckin coolness
Just stumbled, here come the hits
Great article.
Thank you.
Nicely written. Crap phone.
‘world’s best phone’ LOL
do you also believe in creationism?
apple fails to produce products that are fairt to the customer.
iTunes/DRM
iPhone/Tmobile
OSX/usability
…
they need to kick steve out.
Very nice write up.. one question though : Hows your battery life ?
I find with Skype running for a while, and constant 3g, I cant last more than half a day before a recharge is needed. And I would imagine backgrounder only adds to the prob ? very cool otherwise, you tightwad
You are about to find out that using Skype over a less than awesome net connection sucks. A few dropped calls is all it takes.
why oh why do people post just nasty comments!?! they don’t come up with alternatives, don’t offer something constructive and don’t back their comments with proof or references. so i’m forced to guess that they’re 12 hear olds using their daddys computer and they should’ve been in bed an hour ago. i know it’s cliche but as the saying goes “if you’ve got nothing nice to say, don’t say anything at all”. in other words — SHUT UP.
as for your article. i found it insightful, useful and entertaining. i’m stumbling this and recommending this article to all my friends. for just a little effort and some knowledge, you’ve made yourself a HUGE saving. bravo for you! and you’ve effortlessly made fools of those who fall prey to the system that rips the rest of us off.
and yes. the iphone is the best mobile phone there is. i’m sorry but it is. those who say otherwise simply can’t afford one themselves. and they’ll be the first to deny it.
Great Article. Delicious-ing it !
I have an iPhone and DO NOT think its the best phone out there. Maybe the best mobile internet device but certainly not a good phone.
In the European Union, I bought an 3Giphone with no contract in Belgium.
Keep it up !
Great article, though I’m curious, how are the quality of your calls? I pay $48/mo with tmobile for 300min/200txt on my iphone.. this definitely sounds like a better deal though.
Now if only there was a app that did all of that in a click of the button.
Excellent idea, Im going to try it!
What we’re talking about is the slow transition away from major carriers for phone calls. As North Americans, we pay more than any other country for mobile data-services (Texting, Voice Mail) and long distance (not to mention data “plans”). So now we enter the age of the VOIP/SIP enabled phones, and we realize that we now have a choice. You can go online and buy a phone number (DID’s) and have it redirect calls to ANY online provider; such as Google Talk, Skype, SIP or any other number. Once the iPhone 3.0 software comes out with Push notifications and great VOIP support, we can all drag the phone app off our launchbar and replace it with Siphone, Skype or anyone else who wants my money. Now if only we could get cheap roaming data…
The phone itself is fine but the endless possibilities of the app store are what makes the iphone great. People who don’t utilize it can’t and don’t know what they’re missing. The only bad thing has been the contract and the price, both of which have been ..pwned. While it is some amazing technology, $65 per month adds up quickly and $2000 is not something I feel very much like spending for a phone and some sweet applications. You’ve done well to cut that cost to a fraction and people who don’t see the value in saving money simply do not deserve to comprehend it.
I’ve got a similar setup going with my iPhone in Canada. I have a PAYG Rogers account, I hacked their $7 a month unlimited WAP package into working on the iPhone, then use my $20 home Vonage account through Siax when I have wi-fi coverage.
Well.….
This would be great if it didn’t more or less turn your iPhone into an iPod Touch w/ Skype.
$23/mo and having data you didn’t need to pull from Wifi would be nice.
Phusion, you’re not noting that his phone works without 802.11 flavor wi-fi. In effect it works anywhere, and if for some reason Skype isn’t cutting it he can still use the regular phone features. I can’t wait to do this myself, saves me from my $90/mo phone bill. My new iPhone 2G is in the mail…
Hi All,
I’d like to add something to the story… I just bought my iPhone at Apple store. I know, I know it’s expensive. I paid for 16GB $760 with tax. I’m not sure if it comes already unlocked but after updating my firmware to version 2.2.1 (the newest one) I picked up at local ATT store goPhone card for $20, replaced the one that comes with the iPhone and that was it. It works like it should with no problems whatsoever. I didn’t have to unlock it. (although if I did I could probably use t-mobile goPhone card with it)… If I put $100 on my goPhone SIM card it’ll be valid for a whole year or 1000 minutes. This works for me sine I don’t make that many calls. So it looks like the full price unit comes unlocked.
you are soooooooooooooo cheap its disgusting one of the best iPhone capabilities is its Edge/3G internet service and you cant use that with the prepaid card because you’ll be out of minutes in no time. The so called “solution” that you found is nothing more than an overly complicated process to have a dimwitted half functioning iPhone. All the time and effort that went into this is so that you could have the bragging rights to say to you have a hacked iPhone and that you are “sticking it to the man”. Well in conclusion I think it is safe to say that you sir have wasted your time and consequently mine seeing as how there was no way that I could read such a stupid blog and not have something to say about it. ^_^
GoPhown sounds better than GoPwn
@goju2525 You’re somewhat right about the complication this entails. This is after all not a feature intended for the phone, just a bonus for those willing enough to go the extra mile to have (imho) the best phone money can buy. I’m not going to defend my reasoning for being cheap and not wanting to sign a 2yr contract and I’m sure you’re not even going to read this response. For those other readers that are wondering about how the 100mb data package works on this plan; I am now approaching my expiration date for the 30 day limit and I still have 45mb left to use. I regularly used the phone outside of WIFI networks whenever I needed it. Albeit, I’m not the most frequent phone user, but I checked my mail, looked up maps and watched the occasional video. I would be curious to see the statistical data referring to the average monthly data usage of iPhone users and find out how often one even uses over 100mb/mo.
@ all of those folks saying “There’s no better phone” “why not suggest an alternative”… How about HTC’s Raphael phones. Got one myself, from ATT. Makes the iPhone look like a rock. Easy enough to get free tethering, and a HUGE selection of available apps… no app store, though… I like using Google, myself.
hey has anyone tried this on the 3g one?
and know where i can buy either 2g or 3g haha
i really want to try this out.
Wow, $23 a month? I like it!
RT
http://www.privacy.pro.tc
The iPhone is FAR from the “worlds best phone.” In fact, it’s a piece of shit. Look at my site and just compare it to any other phone. The iPhone is a COMPLETE rip off compares to Blackberry, Android, or Windows Mobile devices.
This might make sense for a cheap secondhand iPhone, but it doesn’t make sense for a new unlocked 3G iPhone. With GoPhone you are required you to refresh your minutes once a quarter, or buy a one-year card for $100. It sounds like low usage is 50MB/month, so you need to spend $20/two months on data.
$20/2 months data, $100/year GoPhone charges, $760 unlocked iPhone = $1,200 over two years. $65/month plan, $200 subsidized iPhone = $1,760. So you pay $23/month less in exchange for a bandwidth limit, no SMS, no visual voicemail, and assuming you never exceed call usage on your plan.
You’ll need to replenish the GoPhone acc’t in order keep the card working. Otherwise, AT
Let’s see… In Finland, daily exchange rate from the internet:
$0 for montly fees
$12.7 for monthly (no other limits) data for 384Kbps
$44.8 for montly (no other limits) data for upto 5Mbps
(made calls some fraction of a cent per minute, received calls free)
Oh yeah, you can change operators whenever you like or the phone you like (ofcourse, you need to buy a new phone at those “exorbitant” rates american press quotes for new phones… peanuts compared to differences in monthly price here).
6 Trackbacks
popurls.com // popular today…
story has entered the popular today section on popurls.com…
[…] The iPhone for $23/month: http://mediumjones.com/my-23month-iphone/249 […]
[…] My $23/month iPhone […]
[…] My $23/month iPhone […]
[…] My $23/month iPhone (updated) Don’t know if that would work for you or not. […]
[…] How to Pay Only $23 a Month for Service for Your iphone. […]