I have bought a used AT&T locked iPhone 4S on eBay. It appears that AT&T allows to unlock iPhones for free.
Please note that it is much faster and much more effective to call AT&T support and request to unlock your iPhone 3GS, 4, 4S, 5. Some customers only needed to tell the IMEI code to unlock their phones.
If you are not eligible for an unlock from AT&T, you may still factory unlock your phone really cheap by spending several dollars only. For example, I was recommended to use the unlock_fusion eBay seller. Anyway there is no need to spend $20, $30, $50 or even $100 to unlock your iPhone.
p.s. You may also unlock your phone by jailbreaking, installing Cydia and some unlocking software. It might be free, but the problem is that you will need to repeat this procedure after updading iOS.
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