Most iPhone owners, especially those out of state, know about the existing method to unlock the iPhone by utilizing a Turbo-SIM and specific iPhone compiled software (see here).

Well, today its been announced that a full hardware unlock has been accomplished — TSIM and additional iPhone software, not necessary.

I’ve been steady reading George Hotz’ blog as he journeyed through his iPhone JTAG adventure. Now it has finally paid off! Watch the video…

The current method involves taking apart your phone and doing some complicated soldering, with a high probablity of a bricked phone. Although after the phone is unlocked all the hardware can be removed. We hope to find a software unlock very soon.

- source: iphonejtag.blogspot.com