Hi, The phone is not jail broken .Its as is from Apple, actually a replacement since the first went wrong.However the modem firmware is 05.15.04.which presumably ties it to O 2. I've read horror stories about unusable phones after software fixes?.
The baseband/modem firmware does not really specify an individual carrier, but it is specific to the iOS version, and the version of the phone you have (my 3G has that same BB on AT&T). The good thing about this BB is that you can update to the iPad BB and unlock the phone to work with any GSM carrier, including prepaid sim's. If you upgrade the BB, however, you will have to use custom firmware every time you restore or apple will change the BB back, which will erase your unlock ability. If you use a custom sn0wbreeze IPSW file to restore the phone, it will be jailbroken by default, but that doesn't mean you have to use it. Contrary to popular belief, jailbreaking itself is 100% legal, and 99.9% safe (FOLLOW DIRECTIONS!!!). The illegal part of it is when you use it for piracy, either by installing paid jailbreak tweaks from pirate sources for free, or by installing cracked IPA's (iPhone/iPod/iPad apps). FYI; there are many things you can do with a jailbreak that are not illegal, like theming and adding many things that make the iOS much more intuitive like SBSettings (settings toggles available from anywhere, including the lockscreen and inside of apps, with a swipe of the status bar), Winterboard (advanced theme insertion platform that allows you to theme almost every aspect of the user interface including sounds), and activator (allows you to setup different actions to perform system functions, ie. hold volume up button to skip iPod track up, etc.). All of the things I just listed are 100% free, and 100% legal, and if you need service from apple you can always just plug into iTunes and do a clean restore from Apple. Most of the stories you read of unusable iPhones had to do with people accessing the root file system and messing with things they don't know about or fully understand, or they interrupted a process prematurely, or just didn't follow instructions. It's nearly impossible to "brick" an iPhone at this point, and the software that has been developed to help thwart Apples security checks, such as sn0wbreeze, are extremely safe and easy to use. All you have to do is follow the on-screen instructions and you can't mess it up. I have personally used sn0wbreeze on many different devices with absolute success the first time, every time. If you really don't want to use a custom IPSW file to restore, or don't want to jailbreak, you can try a clean restore again from apple to see if that fixes your BT problem, but I recommend Sn0wbreeze to everyone, and all of iH8sn0w's (awesome) programs have worked flawlessly for me every time, the first time, with every device I've done (iH8sn0w.com). If you'd like to try sn0wbreeze, I'd be glad to give you pointers to help guide you through the process (twitter @iSteve_O). I believe if you pay for a device, you should be able to use it how you'd like, and not have apple constantly policing what you can and can't do with YOUR $200-$1,000 device! Good luck, and I hope I have been helpful, even though I've gotten slightly off topic. Below is a short list of the devices I've experimented with and the software I have used for many restorations/jailbreaks (mine and other people's).
Devices I've personally modified
iPod Touch (2nd Gen) - Custom jailbroken Sn0wbreeze iOS 4.1 & 4.2.1 IPSW using Sn0wbreeze 2.1 & 2.2.1, respectively.
iPhone 3G - Same as above iPod Touch 2g.
iPhone 4 (CDMA) - Custom iFaith SHSH Signed iOS 4.2.8 & 4.2.6 IPSW with Jailbreakme 3.0 (jailbreakme.com) and Greenp0ison, respectively.
iPhone 4 (CDMA) - Custom Jailbroken Sn0wbreeze iOS 4.2.8 IPSW using Sn0wbreeze 2.7.3.
iPhone 4 (CDMA) - Custom Jailbroken (tethered) Sn0wbreeze iOS 5.0 IPSW using Sn0wbreeze 2.8b8 (then back to 4.2.8 using iFaith).
iPhone 4 (GSM) - Custom iFaith SHSH Signed iOS 4.3.3 IPSW with Jailbreakme 3.0 (jailbreakme.com).
iPhone 4 (GSM) - Custom jailbroken Sn0wbreeze iOS 4.2.1 & 4.3.3 IPSW using Sn0wbreeze 2.2.1 & 2.7.3, respectively.
iPhone 4 (GSM) - Custom jailbroken (tethered) Sn0wbreeze iOS 5.0 IPSW using Sn0wbreeze 2.8b8.
iPad1 - Custom Jailbroken Sn0wbeeze iOS 4.3.3 IPSW using Sn0wbreeze 2.7.3.
iPod Touch (4th Gen) - Custom jailbroken Sn0wbreeze iOS 4.2.1 & 4.3.3 IPSW using Sn0wbreeze 2.2.1 & 2.7.3, respectively.
Description of each available software (All software created by iH8sn0w (@iH8sn0w on twitter), and is available at iH8sn0w.com)
Sn0wbreeze - Creates a custom IPSW that is pre-jailbroken with which you will use iTunes to restore (Sn0wbreeze will always preserve your current basband).
iFaith - Creates a custom non-jailbroken IPSW pre-signed with your saved SHSH's, spoofing apple's SHSH verification process (iFaith will always preserve your current basband).
iREB - Tool to put your device into a "pwned" DFU mode that lets you restore using custom IPSW files (included as part of Sn0wbreeze).
iBooty - Tool to quickly boot a tethered jailbreak (much faster boot than Musclenerd's Redsn0w, which is a good tool as well).
iDetector - Tells you if your iPhone 3GS has the old or new bootrom (old bootrom = untethered iOS 5 jailbreak, new bootrom = tethered iOS 5 jailbreak).
f0recast - Tells you if your device is able to be jailbroken and unlocked, and whether that jailbreak will be tethered or untethered.