They’ve finally done it: the iPhone Dev-Team has unlocked the iPhone 3G. The hack isn’t out yet, but the team is shooting for a December 31st release. Right now, the team is working on packaging in the app into a user-friendly application with the simplicity that you see in other apps like QuickPwn or BootNeuter.
Codenamed yellowsn0w, the hack will allow iPhone users to tweak their phones for use on GSM networks and bypass the lock that holds the phone to a service provider. Here in the U.S., the unlock makes it possible for an iPhone to work on T-Mobile's network. Since GSM is widely used overseas, the unlock may be particularly useful to international travelers who will enjoy the ability to choose from a host of carriers while abroad.
If you want to take advantage of the break, you must have a baseband (the software that controls the cell phone part of the iPhone) of 2.11.07 or earlier. Also, it’s important to avoid following the iTunes update process (unless you’re using the team’s PwnageTool) if you want to utilize this hack. To see which version baseband you have, go to Settings, General, About, and select Modem Firmware. The unlock itself requires a jailbroken 3G iPhone. The hack will be installable using Cydia, so Mac and PC users alike can get in on this action.
Sometime before Christmas, there will be a live demo of the unlock via MuscleNerd’s Twitter account. Of course, you can bet Apple is going to be all over this, and is likely working on an update that will break the hack all over again, just as they did in 2007 when the original iPhone was hacked. In fact, there have been reports that Apple's Mac OS X 10.5.6 update prevents popular jailbreaking tools such as PwnageTool and QuickPwn from recognizing an iPhone connected to the computer.