Indian website IT Pro says it's heard from Apple that the company will be relaunching the iPhone 3GS in an unlocked model to keep up with Indian demand for an Apple handheld. Back when the 3GS was first introduced in India, it was only available through a few carriers. Now, demand for iPhones is so high that Apple is simply going to relaunch the old model, this time allowing anyone to use it on any carrier in India.
IT Pro notes Apple is being a little sketchy here by selling such an old phone as new ("India has become a dumping ground for Apple," they say), but Indian customers will probably be happy with the option to get an unlocked iPhone 3GS, as iPhone 4 units are still very hard to find.
Price is another concern. The iPhone 4 in India costs the equivalent of about US$760, so a cheaper option will be popular even if it's a bit slower and clunkier. The iPhone 3GS still won't run cheap; the price is set at 19,990 rupees, or about $444.