IPhone Unlocked by Multiple Sources

Despite what Apple and AT&T have attempted to do, hackers from across the US have already unlocked the phone. The hack has already been posted on various websites and this could mean big business for overseas. Currently, the iPhone is only available to the United States but because the iPhone has been unlocked, it can now work with other carriers (like T-Mobile). Europe is expected to see an increase in usage as it becomes available later.

The iPhone was unlocked by a group called iPhoneSIMfree as well as a New Jersey teenager; both were confirmed on August 24th, 2007. The engadget team verified this and unlocked it themselves to prove that it can be done; you can see their notes and video here. According to the source, iPhoneSIMfree will probably try to make money from this later; whether or not this is legal is still debatable and unknown. Refer to the legal notes by engadget. Even if people do have to pay, it probably won't affect those who want an unlocked phone as unlocked iPhones are selling on eBay for well over 2,000 dollars. There is one iPhone that has a confirmed 25,000 dollar bid. Truly amazing (or ridiculous!).

The New Jersey teenager, George Hotz, spent the entire summer working on this project, some calling it a waste of time. According to him, the time was well spent and definitely worth it. The instructions to how to unlock the iPhone is posted on his blog but is "complicated" and requires extensive skill in soldering and software design. This is definitely not for the simple minded but well worth a look if interested.

By using a different SIM (Subscriber Identity Module) card, the iPhone can use a different carrier which will allow anyone in the world to use it with their own service. This is a huge jump for those not in the United States because the iPhone is only available here and forces all users to use their AT&T plan.

Even with all of these hacks, a third source claims to be able to unlock the phone by software only. John McLaughlin, founder of UniquePhones, claims they will be posting a software that can unlock the phone and allow the user to use any SIM card. This will allow anyone to get an unlocked iPhone, even those who are technologically challenged. They do plan on charging for the software.

Source: http://www.networkworld.com/news/2007/082407-iphone-unlockers-lining.html