While it is already possible to unlock iPhone at a hardware level, no software existed until now to unlock the miracle device. As a matter of fact such software might not exist even now but at least two different videos that have hit the web recently show that there is a software that can unlock iPhone.
In the six-minute video posted on the iphoneunlocking.com blog, John McLaughlin, founder of Uniquephones demonstrates unlocking an iPhone with a software from his company.
A company called iPhoneSimFree.com also claims to have the first software-only unlocking method. Moreover, iPhoneSimFree.com was the first to show it to a credible third party, an editor of Engadget.com.
John McLaughlin has not posted the method on iphoneunlocking.com though. A phone call from an AT&T Wireless representative was more than enough to keep him from doing so. John McLaughlin could earn a fortune by selling the software but even if makes no cent on it, the software will spread quickly throughout the web. That's why I don't believe in artificial restrictions. People will always find workarounds.
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