Telecom service provider, AT&T will soon allow customers, who are not bided by contracts with the company, to use unlocked iPhone smartphones.

The move is a significant shift from the company policy to block unlocked iPhones on its network and this will allow subscribers to take advantage of cheaper telecom services while travelling abroad. According to reports, the customers will be allowed to use unlocked iPhones if they have completed their contracts and are in good standing with the company.

The users, who are in between a contract period, will have to pay a contract termination fee in order to use unlocked iPhone on the network. Users travelling to foreign locations will now be able to use their unlocked iPhones for using a SIM card from a local GSM service provider instead of using expensive AT&T roaming services.

Unlocked AT&T phones also work on T-Mobile's network in the country but not on Sprint or Verizon as they use the CDMA technology for providing services and are not relied on SIM cards. AT&T’s official website still says that iPhones were not eligible for unlocking but several reports indicate that the company will soon announce a change in policy.