Buying an Iphone 5s to use in Paraguay

So, as far as I could read anywhere, the only authorized resellers in PARAGUAY are Tigo and Claro. This suggest that the only way to acquire an Iphone 5s is to sign a contract with those carriers.
BUT, if you go the apple store, you have the option to buy a GSM unlocked phone. So, what's the deal with that? Doesn't "GSM  unlocked" mean that it'll work with any nanochip, anywhere in the world? Am I able to just buy from the store and make it work with my current, contract-free carrier?, will that work?

gastonetchev wrote:
Doesn't "GSM  unlocked" mean that it'll work with any nanochip, anywhere in the world?
No. It doesn't. It means it will work with any supported GSM carrier. It should work with an unsupported, but compatible GSM carrier, however, not all features may be available.

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