no, its not illegal as long as you get the unlock code, called subsidy unlock code, from the carrier that the phone is locked to. you wont be able to use a verizon phone on att's network, becuase verizon doesnt use sim cards, and att does. youwill have to have a phone that can use a sim. talk to att and see if you can get a new phone, you might be able to get early upgrade if you're close to your upgrade date.