Hackers have succeeded in (partially) unlocking the iPhone so Apple's much-hyped device can be used on at least one network other than AT&T.
Although the iPhone Development Project team has broken the shackles tying the device and AT&T directly, there are still limitations that mean customers can use pre-paid SIMs from Cingular, for example, but not yet use any SIM of their choice.
A tool called iASign will unlock the iPhone allowing it to be used with any Cingular or AT&T SIM with FULL functionality of the iPhone, avoiding the need to use the iPhone-specific SIM that comes with the device. Virtual network operator pre-paid SIMs also work, providing these operators piggy-back on AT&T's network.
Using alternative SIMs provides several advantages. In the case of a Cingular SIM, there's no need to sign up to a new two-year contract. Those whose businesses subscribe to Cingular can use company SIMs on personally-bought iPhones. Finally, those not wishing to tie themselves to a contract can use pre-paid SIMs.
View: Full Article @ El Reg Hardware
Although the iPhone Development Project team has broken the shackles tying the device and AT&T directly, there are still limitations that mean customers can use pre-paid SIMs from Cingular, for example, but not yet use any SIM of their choice.
A tool called iASign will unlock the iPhone allowing it to be used with any Cingular or AT&T SIM with FULL functionality of the iPhone, avoiding the need to use the iPhone-specific SIM that comes with the device. Virtual network operator pre-paid SIMs also work, providing these operators piggy-back on AT&T's network.
Using alternative SIMs provides several advantages. In the case of a Cingular SIM, there's no need to sign up to a new two-year contract. Those whose businesses subscribe to Cingular can use company SIMs on personally-bought iPhones. Finally, those not wishing to tie themselves to a contract can use pre-paid SIMs.

As to the article, lets make one thing crystal clear: AT&T==Cingluar. Cingular does not exist anymore, so there is no such thing as a Cingular SIM anymore, they are all AT&T, even if the SIM card (like mine) is an older one that still says Cingular on it.
It's pathetic too. It's also a bit sad when these so called mods can go around posting flame bait to other users, personal attacks on members (in open forums) and pretty much do what the rules state that you can't but be damned if anyone else do it. This place has gone down hill and has been for a long time.
too many times have i seen less-than-ideal behavior from mods. remember the good old neowin?
back on topic, it was bound to happen. dint get me wrong - I love apple (macbook and ipod owner) - but technology just works that way: if it can be secured, it can eventually be cracked.
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