The iPhone Dev Team has announced that they’ve been able to break in the baseband processor of the 3G iPhone. This is exciting news, as it means they have access to the core of the system. This will, in time, give them the ability to fully manipulate the hardware and unlock it.

"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."

It’s only a matter of time now before those of us who don’t want to sign up with AT&T will be able to join the iPhone 3G party.

Below is a video of a custom application running on the iPhone 3G baseband.

iPhoneunlocking.com will be offering a downloadable software unlock service between 12 and 2 EST tomorrow (Saturday). The cost is expected to be between $25 and $50 and a discount is offered for those who have already signed up.

UniquePhones, a Belfast-based firm, will now "allow customers to unlock their Apple iPhones so they can use SIM cards from carriers other than AT&T to activate the mobiles."

Where do we send thank-you notes?