The iPhone Dev-Team have finally managed it - they've successfully unlocked the iPhone 3G. The hack isn't yet available (December 31st seems to be the planned release date), and will require a baseband of 2.11.07 or earlier.

The Dev-Team are currently working on a nice little QuickPwn style application to make the hack as user-friendly as possible.

We have been working hard on a few other things. The main one being the 3G unlock codenamed “yellowsn0w”. This is now completed and is currently being packaged into a user-friendly application with the simplicity that you see in QuickPwn or BootNeuter.

• The target release date for the unlock is New Year’s Eve 2008.
• This unlock method is available to iPhone 3Gs that have 2.11.07 baseband or earlier, we did warn you.
• The unlock requires a jailbroken 3G iPhone.

[via iphone-dev.org]