Breaking: iPhone Partially Unlocked, Calls Without AT&T Contract - Gizmodo Quote:
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Apparently, the amazing code wizards at the iPhone Dev Wiki have been able to partially unlock the iPhone using a new application called iASign. It won't fully unlock the iPhone for use with other companies, but the hack will allow you to use any existing Cingular/AT&T Pre-paid/MVNA SIM so you don't have to get a two-year contract with AT&T. We are now testing this, but if confirmed the benefits are great.
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I think this is great, as the AT&T lockin is one of the biggest disadvantages of the iphone. Well done to the hackers, now lets hope they get it fully unlocked soon!