Wanting to buy an iphone

I am wanting to buy an iphone, but I need help. I don't understand the whole concept of the locked and unlocked phones that are for sale on ebay. What is the newest version and what do I need to look out for. I currently have service through at&t but may be changing over to alltel. Will the phone work with both companies?
I know I am being a blonde about this, but I just don't know that much about what I need to watch when purchasing.
TIA

The iPhone is a GSM phone and works on GSM networks only - which is the worldwide standard - GSM networks dominate the overall worldwide market by a significant margin.
Alltel has a CDMA network and requires a CDMA phone. The iPhone is not compatible with CDMA networks. CDMA phones do not have a SIM card.
An unlocked iPhone - which can be used with a SIM card from any GSM network provider, is not covered under Apple's warranty. Unlocking an iPhone voids the warranty and eliminates any support from Apple.

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