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I want to buy a Motorola Droid. I do not live in US. My telco is a 3g gsm network. They are very liberal. You buy their sim card, insert it in your phone and you are good to go. If I buy a droid from US and insert my sim will it work ? Or do I have to perform arcane unlocking rituals on the droid first ?

Depends on the vendor; anywhere selling with international shipping should sell unlocked handsets.

The next-generation Droid X (kind of like the "Droid 4g") comes out in two weeks. I don't know how much it will cost to purchase one in your country, though.

Strictly speaking, a Droid will do you no good, as it's a CDMA phone. The Milestone is identical, but runs on GSM networks. It is also available in most European countries, so you could just get it from your carrier, assuming you live in Europe, that is.

Speaking as a Droid user, I can say that it will not work, because the Droid is a CDMA phone. Supposedly there is a GSM variant of the Droid floating out there, called the Motorola "Milestone", so you should keep your eyes out for that instead.

Edit: It seems that Executor beat me to it.

A comment on the Droid X: That looks like it will be another CDMA-based phone (as Verizon Wireless currently has it reserved here), so I don't recommend that you hold your hopes up for that one.

At release the Milestone had more multitouch features enabled in the software too, but I don't know if that's still the case.

Couple of links for the Droid Milestone. Apparently uses 900/2100 MHz freq's for 3G, so as long as your carrier supports that you are good to go.
Newegg
http://tinyurl.com/35lkbnp
Overstock
http://tinyurl.com/2f2cz2p
Buy
http://tinyurl.com/2bhwwyd

Don't know if they ship international, but it should give you a starting place, anyway.