Dev Team has come out with a solution called yellowsn0w 0.9.5 0.9.6 beta that will unlock iphone 3g. Here's the original link: http://blog.iphone-dev.org/post/67797811/dont-eat-yellowsn0w#idc-ctools
It is still in beta phase, so use it at your own risk.
Here's the yellowsn0w feedback report. It seems that the success rate is higher than the failure rate. However, I would prefer to wait for stable version to avoid all the hassle when bricking my iPhone.
Here's two method that I have seen on the web:
---------------------------------------- Method #1 (from Youtube's reda92) 1. Install Yellowsn0w thru Cydia, keep your Third-Party Sim in the iPhone 2. Reset Network Settings. 99% of your success rate will depend on this. (LF: you can find this in settings - general and to the bottom you'll see a "reset" menu in which you can find this) 3. Reboot your iPhone 4. Wait a little over a min. 5. Remove your SIM card and re-insert it back in 6. Wait 30 sec. 7. Turn on Airplane mode and wait 10 sec. (This is important as well) 8. Turn of Airplane mode, you should see "searching." Start smiling, as the T-Mobile carrier will start appearing. 9. Make a call! Method #2 (from to Deli_gt at hackint0sh): 1. Recover your iPhone to the 2.2 firmware. 2. Quickpwn it with Installer and Cydia installed 3. When phone is ready, connect to your Wifi. Got to Cydia. When it opens, ignore the update for Cydia and install Mobileterminal and, after that, Sbsettings. 4. Turn off data roaming and 3G in Sbsettings! 5. Install Yellowsn0w from Installer. 6. Slide your finger from the top-left to right on the screen to get Sbsettings open 7. Press the power button in Sbsettings and from the popup restart button. 8. When the iPhone resets, wait for 20-30 seconds and open up Mobileterminal 9. Go to terminal and type: yellowsn0w -c yellowsn0w -q airplane mode on airplane mode off If you get "open: Resource busy" just repeat the command where you got it from. If the command "yellowsn0w -q" keeps loading for more than 20sec and your terminal looks similar to pics from Flickr: deli_gt's Photostream then move to next step. 10. Go to Settings. Turn Airplane Mode on. Wait 10 secs and it should start searching for the network. It should find the network and everything should be ok. If not, and the iPhone still shows the four dots for the signal, repeat steps 8 and 9 but first exit mobile terminal totally by holding down the home button until it closes. If that doesn't work either try the following: Open up the Terminal and type: yellowsn0w -c yellowsn0w -r yellowsn0w -q airplane mode on airplane mode off ---------------------------------------- I would highly recommend you look up the Yellowsn0w report and look up the success rate of your carrier before you proceed.
UPDATE: 0.9.6 Beta version has a very high success rate of unlocking! I am going to test it out now.
I unlocked my iphone with 0.9.6 version! All work perfectly. I follow the tutorial at iClarified. I need to do a network reset though. And one thing I noticed. After restarting from airplane mode, the signal is weak. But it is fine after a reboot.
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