Deduction of balance without using any call or sms.....:(

The iPhone is not officially available in Kuwait, and the cell network carriers there may not be compatible, even with an "officially unlocked" phone. Updating the firmware will not lock an a legally unlocked phone, but may render an illegally unlocked one permanently unusable. I would be very dubious of a phone that has not been updated since 2.0.1 (more than 6 months ago).

Here is the listing of iPhone models for all the countries where it is legally sold, locked and unlocked:

http://support.apple.com/kb/HT1937?viewlocale=en_US

Please explain what you mean by "balance deducted" and "all of my balance from my sim card". Your profile states you are in the US - where did you get the "officially unlocked" iPhone 3G and what cell carrier are you using?

Firmware version 2.0.1 is ancient. How did you not upgrade to the current version, 2.2.1, when you first activated your phone yesterday?

I'm not sure what you mean by "balance". Do you have a pay-as-you-go account?

Is this for both data and voice/sms? If you go on the internet with Safari or any other iPhone app, or are fetching email, you are using data. What cell carrier are you using and what type of data account do you have?

As I said before, your carrier in Kuwait may not be compatible with the iPhone.

To update an iPhone, you have to have an iTunes account and have activated the iPhone on iTunes. Since this can be done only from locations where the iPhone is officially supported, this may not be possible in Kuwait.

I'm curious - why spend a lot of money for an iPhone if you don't have data service and are using it as a "simple phone"? The value of the iPhone is in its data and multimedia capabilities. For use as a basic cell phone, any cheap phone can do as well.

Unfortunately, there is no way to update the iPhone with Apple firmware, legally obtain and install iPhone apps, music or video without iTunes. Unauthorized or illegal modification of the iPhone that might make some of these possible can't be discussed in this forum under the Terms of Use.

Don't worry about updating if you have no access to iTunes. Just check in settings that PUSH and fetch are off, and that GPS for your map application is off also. The phone may have been trying to connect to the internet to get data for several functions, and that may have used up your money. Turn off those functions carefully and see if it stops using up your money before you have a chance to make calls.

Good luck!

To update the software, you need iTunes on either a Mac or PC. You would also use iTunes to sync music to the phone.

Since you're not using any of the actual features of the phone, sell it and buy a simple phone.