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How do you unlock an iPhone to use it with a cheaper phone service?

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You Jailbreak it.

Jailbreaking, is the process of removing the limitations imposed by Apple on devices running the operating system through use of custom kerneks.Jailbreaking allows users to gain full access (or root access) to the operating system, allowing iOS users to download additional applications, extensions, and themes that are unavailable through the official Apple App Store, via installers such as Cydia. A jailbroken iPhone can still use the App Store, iTunes, and other normal functions, such as making telephone calls. Unlike rooting an Android device, jailbreaking is necessary if the user intends to run software not authorized by Apple.

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Try jailbreaking it.

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You can unlock your iPhone using Remote unlocking method. Which is the safe and secure method to unlock iPhone. You can get this service from http://www.unlocking4u.com/apple-iphone/rs5wp9/ here you need to specify your country, Network name to which it is locked, IMEI number of your iPhone. Here they unlock your iPhone using latest versions of iTunes. This is permanent unlocking solution. Both upgrading and downgrading will not lock your iPhone again
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you would have to call your phone service now and see if they would be willing to unlock the phone.

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There are programs on the web that will do this for you, just google "unlock iPhone (your iPhone model)" and you will find software programs that will do this for you. NOTE: If your contract is not currently up and your iPhone still has service, DO NOT ATTEMPT! Apple does sell factory unlocked iPhones, but they are insanely expensive.

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