unlock= so it can be used for making/receiving calls on other networks ...example t-mobile
jailbreak= to free it from apple software restrictions. example use non-itunes apps, song videos, and emulators, homebrew..etc.
you can also jailbreak an itouch.
so in essence...you can jailbreak an iphone...but its still "locked" to ATT cellular service. and vise versa
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