I like to provide my input to clarify upon information about the useability of the iPhone in Malaysia. There are quite a few iPhone users already in Malaysia, employing various methods to allow the use of the iPhone with the local telcos.

You do not need to have an AT&T contract to use the iPhone. You do not need to pay extra to purchase an unlocked iPhone - this can be done locally. All you need is to have a contact in America who can buy the iPhone and have it shipped to you. Pay extra for FedEx or UPS or DHL shipment. Do not use the normal US air-mail service, unless you want to run down to the Customs office to clear your shipment.

I have been an iPhone user for more than a month now. The results?

DiGi
Incoming calls - works
Outgoing calls - works
SMS in - works
SMS out - works
EDGE - works
YouTube - works
WiFi - works at all public places that has hotspots (Airzed, TMNet, Time)

Celcom
Incoming calls - works
Outgoing calls - works
SMS in - works
SMS out - works
EDGE - works
YouTube - works
WiFi - works at all public places that has hotspots (Airzed, TMNet, Time)

Maxis
Incoming calls - DO NOT WORK
Outgoing calls - works
SMS in - works
SMS out - works
EDGE - works
YouTube - works
WiFi - works at all public places that has hotspots (Airzed, TMNet, Time)

The iPhone cannot do MMS.

The problem of no incoming call with the Maxis network is a Maxis SIM/network problem. I have - and so have a lot of iPhone users on Maxis - raised this issue with Maxis. For the moment, there is no resolution to the problem - either Maxis is ignorant or too arrogant to consider this as a problem. Only time will tell. Consider this when you want an iPhone, especially if you cannot or will not want to switch from Maxis to another telco.

The software to activate and unlock the iPhone to use with any SIMs is freely available online.