As reported by Engadget, a group of iPhone lovers cracked the iPhone Sim Lock system that which make it possible to register with another provider instead of AT&T. Engadget team downloaded the software and tested it. The Sim was unlocked within a couple of minutes with only a simple software.

The software is sold as commercialware at iPhoneSimFree. I did not check for further details as I am not using an iPhone myself. In fact this beautiful gadget has not reach my country yet.

The process of unlocking the iPhone sim is easy. As quoted from Engadget :

• The unlock process took only a couple of minutes. From our end it was totally painless.
• Once you put your new, non AT&T SIM in the device, you have to go through the usual activation process. This can, of course, be done by anyone anywhere with the right tools (like iASign or iActivator)
• We tested with an active T-Mobile SIM — after the hack was finished and we reactivated we immediately got full bars and the T-Mobile carrier info popped up in the top bar.
• Everything is otherwise the same, except the menu system now has a couple more options. The root menu has Carrier settings where you can select your preferred network if you don’t want to roam.
• The General -> Network menu now has an EDGE network settings area where you can input your carrier’s APN and username / password. We put in our T-Mobile info, and were immediately online. (Apparently these hidden menus were added in the 1.0.1 update, they tell us. How convenient!)
• Visual voicemail isn’t in the cards — sorry. That was, of course, to be expected because it’s a special AT&T network-specific feature right now. When you hit the voicemail button you are taken immediately to your carrier’s default voicemail line though, and that works just like it would on any other phone.
• Everything is confirmed as working on a non-AT&T network: SMS send / receive, internet (including Safari, Mail, Google maps, etc.). YouTube doesn’t work out of the box, but that’s to be expected. If you’re not on AT&T you have to manually activate YouTube — here’s the guide on how to do that. (YouTube is the only app you have to activate like this.)