Get ready, because the iPhone 3G unlock is coming to an iPhone 3G near you. The iPhone Dev Team have been able to break in the baseband processor. As you may remember from the first-generation iPhone unlock, this is big news because it means they have access to the core of the system, which gives them the ability to fully manipulate the iPhone 3G hardware and, therefore, unlock it. They gave us all the technical details and posted a demo of it in action:
This is a video of a custom application running on the iPhone 3G baseband, which is big news.
Nucleus is the operating system that runs on the PMB8878 baseband processor, we are using minicom running on the iPhone to talk to the basband via AT commands, the AT command shown is a custom AT command that has been inserted into the PMB8878 that starts an application on the baseband, one of the things that this application does is to lists the tasks (processes) that are running within Nucleus.
Now it's just a matter of time before they come with the unlock and, at last, total carrier independence on compatible 3G networks. [iPhone Dev Team Blog]