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

t's high noon, Apple and AT&T -- we really hate to break it to you, but the jig is up. Last night the impossible was made possible: right in front of our very eyes we witnessed a full SIM unlock of our iPhone with a small piece of software. It's all over, guys.

The iPhoneSIMfree.com team called us up to prove their claim that they cracked Apple's iPhone SIM lock system, and prove it they did. (No, we don't have a copy of the unlock software, so don't even ask us, ok?) The six-man team has been working non-stop since launch day, and they're officially the first to break Apple's SIM locks on the iPhone with software. It's done. Seriously. They wouldn't tell us when and how they would release it to the public, but you can certainly bet that they'll try to make a buck on their solution (and rightly so). We can hardly believe the iPhone's finally been cracked. No, scratch that -- we just can't believe it took this long.

Again: we can confirm with 100% certainty that iPhoneSIMfree.com's software solution completely SIM unlocks the iPhone, is restore-resistant, and should make the iPhone fully functional for users outside of the US. Read on for details and links to our video, and check out the gallery of images below.

Two claims of unlocking Apple Inc.'s iPhone have surfaced in recent days and a third is set to be announced Saturday.

One blogger, George Hotz, on Friday posted a step-by-step tutorial for unlocking the iPhone that involves both hardware and software modifications. His blog also includes photos of an iPhone he said is unlocked and shows T-Mobile USA Inc. as the service provider. At another site, iPhoneSimFree.com, a company claims it can unlock iPhones through software only. A screen image with an item about the company on Engadget.com also shows an iPhone displaying the T-Mobile name.

In addition, John McLaughlin, founder of Uniquephones, said his Belfast, U.K.,company will be posting software on Saturday that iPhone users can download to unlock their handsets to work with any SIM (Subscriber Identity Module) card on any network they choose. The software should hit the Web at www.iphoneunlocking.com between noon and 2 p.m. Eastern Time, he said.