No chips involved here and the phone wasn't unlocked. The phone was jailbroken, which isn't the same as either and can be done by anyone for free with little effort. If someone charged you to do this then you were as near robbed as makes no odds.
As far as Apple are concerned the phone is still locked to Orange. And while it may seem unlocked if the OS is updated using iTunes it will be automatically locked again and that's assuming Apple don't opt to render it unusable if you attempt to update it because it was jailbroken in the first place.
I'm not sure about the status of any contract or any particular network, but many will unlock out of contract phones for free or at a nominal charge (Vodafone have unlocked both in contract and out of contract phones for me for nothing). Given the value of an unlocked iPhone I'm minded to suggest that you might want to have it properly unlocked and thus have the freedom to use it on any network and update it as you please.
The original 32 bit junkie now snorting pure 64. Sky Broadband, Wired, Wireless, VoIP, 2 Macs, 2.5 Hackintoshes, 3.5 PCs, iPhone, OS X, Windows XP, Windows 7, Ubuntu.
Rehab is for quitters