NJ 17-year-old claims iPhone unlock – UPDATED, 2 methods now

[926AM PT] Using abundant quantities of the liquid fuel source shown above, a very dedicated group of Apple fans have documented steps they took to unlock the Apple iPhone's chains to AT&T: Link.

They implemented both hardware and software changes, and in doing so, proved that the device can be modified to permanently function with other network carriers.

Snip from Apple Insider post:

Calling their project Finding JTAG after the Joint Test Action Group standard used to test access ports on circuit boards, the hobbyists claim to have refined a surefire but dangerous ten-step process that allows the iPhone to use an unmodified SIM card from T-Mobile or other GSM cellular networks.

More in this AP account:

George Hotz, 17, confirmed Friday that he had unlocked an iPhone and was using it on T-Mobile's network, the only major U.S. carrier apart from AT&T that is compatible with the iPhone's cellular technology.

While the possibility of switching from AT&T to T-Mobile may not be a major development for U.S. consumers, it opens up the iPhone for use on the networks of overseas carriers.

"That's the big thing," said Hotz, in a phone interview from his home in Glen Rock.

Here's the Finding JTAG group's website: Link. (thanks, Jason Tester, via David Pescovitz!)

[1016AM PT] Reader comment: A.V. says,

In the last PC Magazine, AT&T has promised to "pursue" anyone who unlocks their iPhone… don't they have to allow unlocks by FCC law?

Mike

Engadget just confirmed that there is, in fact, a working software hack to unlock the iPhone.

Bo Stewart says,

The unlocked iPhone on ebay: Link.