Can OS be loaded onto phone without contract?

[gutcheck]

I am selling two phones on eBay (original 2G). I've done a hard reset/wipe (?) which brings the phone back to original condition without the OS. Can someone then load the iPhone OS without a contract? I'm curious why someone would buy the phone if they have to then get a contract. It would just be cheaper to get the 3G at $99, wouldn't it? Or is it usually someone with an AT&T account that is out of contract that doesn't want a new two year commitment?? Wondering how this works. Thanks in advance!

 

[Alli]

Restoring doesn't delete the OS. It's still there, just not active. Often a phone is purchased, as you said, by someone who doesn't want to commit to a new contract. Other times by someone on another GSM carrier where they will unlock to use.