The iPhone, when developed, was set up so it could only be used on the AT&T network and could not be used with any other carrier (i.e. Verizon, etc).
Hackers, of course, viewed this as a challenge, and someone has released a piece of software that unlocks the iPhone to be used on any carrier's network.
Is it legal? Does it void warranties? Will Apple be sending out a fix to prevent this? Well...those are other questions.
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