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Unlocking an iPhone is often interchanged with jailbreaking. But
they're not exactly the same. Jailbreaking is a procedure that's done to
let you use applications that aren't Apple-approved on your iPhone.
However, before you can unlock your iPhone, you need to jailbreak it.
Unlocking in this sense means breaking the lock on your SIM card and
lets you use your iPhone with not just carriers that are approved by
Apple, but with whichever network you prefer.
For example, Verizon
and AT&T are the only networks with which you can use your iPhone.
By unlocking your mobile, you can use other mobile communication
networks in your local region or anywhere else in the world.
