iPhone 3G in China - no 3G, no WiFi?
According to the South China Morning Post, the carrier wants Apple to supply a custom version of the iPhone which disables both W-CDMA (3G) and Wi-Fi. China Mobile doesn't yet have a 3G network in place and is afraid that customers will buy the iPhone and unlock it for use on more capable networks. This explains the lock-out for 3G, but killing the Wi-Fi is just spiteful.
Given that Apple ships an identical iPhone to every other world market, it's doubtful that China Mobile will get its way. But then, no other world market has a potential customer base of two billion people. If these functions are disabled, it will most likely be done in software.
via gadgetlab, gizmodo, cellular news