UPDATE: Engadget has a post about iPhoneSIMfree who have apparently developed a piece of software which will unlock the iPhone: “We can confirm with 100% certainty that iPhoneSIMfree.com’s software solution completely SIM unlocks the iPhone, is restore-resistant, and should make the iPhone fully functional for users outside of the US”. However, there’s no details on when it’s going to be released to the public. However, a second piece of software to unlock the iPhone has been announced, going on sale between 12-2 EST at iphoneunlocking.com, notes Engadget. The price will be between $25-50, with a discount for people who have already signed to the service, as 450,000 apparently have.

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But anyone who wants to rush right out and try it should stop hyperventilating now—it involves soldering, among other things. New Jersey teenager George Hotz blogged Thursday about hacking the iPhone for use with T-Mobile and confirmed it today for various media outlets. Beyond T-Mobile in the U.S., the hack should make the iPhone usable on networks in other countries.

His hack takes about two hours and, he says, can be handled by anyone who “has modded a game system.” (He actually went out and bought a new iPhone Wednesday night so he could unlock it and blog about it in real time, while answering questions on IRC.)  He said a software hack would require being able to remove the bootloader but someone else will have to solve that; he’s leaving for college this weekend and won’t have time.

AP: Hotz, who used donations to do his hack, doesn’t want to see others do it for money.  The mod leaves most functions intact but “visual voicemail” isn’t usable. 

CNBC: Hotz demonstrated the process live. Here’s the video.