I have an older iPhone originally purchased in USA.  I am now in Europe and changed my service provider to a local company (that supports iPhone).  I am told that if I try to update my phone will be frozen.  Is this true?

I have an older iPHone Type MB384LL probably type 1 or 2 16GB version.  It was originally used in USA with an AT&T account.  I am now in Bulgaria and using a Bulgarian simcard from a local company - MTel.  I am told that if I update the software via iTunes the phone will be disabled as it is not using the original AT&T card (original account closed).  Is this true?  I know that originally all iPhones were tied to a particular service provide, but there has to be a mechanism for dealing with relocating etc.

Your phone has been hacked to make it work where you now live. Thus, updating software or restoring your phone will re-lock it to AT&T. Since AT&T will not unlock an iPhone for anyone for any reason, there is no way to get your phone officially unlocked. If you update software or restore the phone, you will have to hack it again. This will also require the last AT&T sim card that was used in the phone.

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