Hotz detailed the method he used in cracking the iPhone on his blog:

This method is very similar to the method used to unlock the Siemens phones with the S-Gold2 chipset. The S-Gold2 has a bootrom which allows you to download a bit of unsigned code. This code is run if certain flash addresses are blank. Using a little hardware trick, which I’ll explain later, we make them appear blank. Then once we have unsigned code running on the baseband, we can download a modified firmware, with the unlock patched in, to the nor flash. The signature checks only cover this region while it is being downloaded the first time. Once the code is on the NOR we can do whatever we want. So patch out the PN lock; Voila, unlocked iPhone.”

Later he goes into detail and provides the reader with 10 (not so easy) steps that will finally allow anyone to use the iPhone in a network of his choice.

This is definitely good news for world-wide iPhone fans. Then again, good news for consumers usually translates into bad news for the manufacturer/ carrier. Both AT&T and Apple are sure to have to alter their business plans.

Up till now Apple has been busy enjoying its success in the United States and kept mum about iPhone release plans overseas. With the device now open for any carrier’s business, a change in release terms, offer and price is bound to happen.