iPhone 3G Unlocked, Software Release on New Years

Gizmodo reports that the iPhone Dev Teams has unlocked the iPhone 3G and are planning to release the software on December 31st.

While it took a little longer than the free iPhone EDGE unlock, it does sound like this is the real deal. The team is claiming a successful unlocknow the next step is to package it up in a user-friendly GUI app like Pwnage Tool.

"Unlocking" is the process by which customers can break the SIM-lock that ties the iPhone to one specific carrier. There are a number of caveats to the hack so interested readers should see the Dev Team blog.