Has anyone tried using their iphone in "airplane mode" and just using WIFI when it is available? I think this will be just like using an itouch. I would like to use skype in this manner and email. Is this a problem and will I still be charged for data transfer by AT&T?
Just turn off data roaming and you won't be charged for any internet use.
settings->general->network
I have verified what Otter has said with about turning Data Roaming off (default setting) while traveling. Works fine.
Yes. Put your iPhone in airplane mode, then turn on WIFI. Then if you have WIFI available, you can use all the data features for free (but of course your phone won't work in airplane mode).
Or, you can purchase an international data roaming plan from AT&T before you leave. This lets you use your phone, when you don't have a WIFI connection, to get data (e-mail, web browser, Maps/GPS) without exorbitant prices.
When I was in Italy last month, I bought the 50 MB data plan and it was more than enough for my 3-weeks over there. I used about 10 MB data a week (it costs about $1.20/MB), so if you're only going for a couple of weeks, the 20 MB plan might be enough for you.
AT&T now has a free iPhone app that lets you check your current monthly data usage from the iPhone, so you can monitor and if you're getting close to using all your monthly international data allotment, you can switch off data roaming and use only WIFI.
You do NOT want to go over your international data plan limit or you'll face very high per-megabyte charges.
Thank you to everyone for clearing up how I can use my iphone in Italy. I had trouble getting a clear answer AT & T. We plan on using some of Rick Steves apps. the suugestions should keep our costs down when using our phone on the internet or calling home via the internet. I know some of our hotels have free WIFI.