I am sorry that I cannot tell you if it was 16kb or 32kb that he was asking about. I don't think it was "gray market" as we were in what appeared to be perfectly reputable store where I have already purchased other electronics and properly registered them. Regarding unlocking them, my understanding is it is now legal in the US to have your iphone unlocked, and it has been legal in Canada and Hong Kong?? Anyway, we thought the price at $16K was too high so we will wait until we are back in the US.
Our contract with PCCW mobile and TV/internet requires us to pay early termination fee equal to remaining months on contract.