What is the difference between carrier unlocked and factory unlocked iphone 4?

Hi, Im frm Abu Dhabi, I came to know frm some of my frnds and frm some websites that, unlocked iphone 4 is allowed to use any carriers but are not allowed to update software in iphone 4. In case of factory unlocked iphone 4 we can update software and can use different carriers too, is that true? Pls advise.
Also, please advise if we have an unlocked iphone 4 (not factory unlocked) and is tat necessary to update software / firmware?

If you go to the Apple Store in the US and ask for an unlocked phone, at $649/$749, it comes without a microSIM and is unlocked. You are responsible for getting a microSIM and setting up service. It is factory unlocked.
If you purchase an iPhone in Australia with service from one of the cell providers, once you meet terms they set you can apply for unlocking the iPhone, which may have a fee to do do. Once you have met all the terms you are notified and you connect your iPhone to iTunes where you will get a message that your iPhone is unlocked. This is officially unlocking it through the carrier. You now either stay with that cell provider or get a microSIM from another provider and set up service.
In either case, as wjostem pointed out, officially unlocked is officially unlocked.

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