Report: Hackers Completely Unlock the iPhone

A new (and unauthorized, of course) piece of software developed by a team of hackers will let you use the iPhone with any SIM, not just AT&T's, according to Engadget.

The blog reports that the coders at iPhoneSIMfree.com called Engadget editors and walked them through the unlocking process, which requires a software app that the team has yet to release on the Web. The Engadget bloggers say the installation took just a few minutes, and that once competed, they were able to make calls on their test iPhone with a T-Mobile SIM card. Practically every iPhone feature was still working, according to Engadget, save Visual Voicemail. Sure, it may all sound a little fishy, but Engadget has a bevy of screenshots and videos backing up the story.

So, how can you unlock your own iPhone, you ask? First of all, the hackers behind iPhoneSIMfree.com haven't released their code yet, and it's not clear when they plan on doing so. Also, even if you do get your hands on the unlocking software, you'll almost certainly void your warranty in the process, so do it at your own risk. Still, if you've been chomping at the bit to get an iPhone but don't want to sign a contract with AT&T, your lucky day may be fast approaching.

iPhone unlocked: AT&T loses iPhone exclusivity, August 24, 2007, 12:00PM EDT [Engadget]