Upgrading unlocked iphone from 3.1 to iOS 4?

johnpau2013

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I have been using unlocked iPHONE 3G on T-Mobile network from past 2 years.

When I checked my Network =>About here is the info:

Version: 3.1.3 ( 7E18)
Carrier: Carrier 5.1
Model: MB048LL


Now sometimes when I try to go to iTUNES and download some free apps and install them, they give
me an error saying needed iOS 4.

Questions:
========

1) Can I upgrade my phone to iOS4 or newer if there is anything available ?

2) Will there be any advantage on my iPHONE (tmobile) if upgrade to a newer version compared
to the one I have ?

3) If YES how can I upgrade the OS on my iPHONE ?

4) After the upgrade will it still work with my T-Mobile network ?
 
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