NEW YORK (AP) -- A teenager in New Jersey has broken the lock that ties Apple's iPhone to AT&T's wireless network, freeing the most hyped cell phone ever for use on the networks of other carriers, including overseas ones.

George Hotz, 17, confirmed Friday that he had unlocked an iPhone and was using it on T-Mobile's network, the only major U.S. carrier apart from San Antonio-based AT&T that is compatible with the iPhone's cellular technology.

While the possibility of switching from AT&T to T-Mobile may not be a major development for U.S. consumers, it opens up the iPhone for use on the networks of overseas carriers.

"That's the big thing," said Hotz, in a phone INTERVIEW from his home in Glen Rock.

The phone, which combines an innovative touch-screen interface with the media-playing abilities of the iPod, is sold only in the U.S.

Calls to AT&T and Apple for comment were not immediately returned.

The HACK, which Hotz POSTED Thursday to his blog, is complicated and requires skill with both soldering and software. It takes about two hours to perform. Since the details are public, it seems likely that a small industry may spring up to buy U.S. iPhones, unlock them and send them overseas.

"That's exactly, like, what I don't want," Hotz said. "I don't want people making money off this."

He said he wished he could make the instructions simpler, so users could modify the phones themselves.

"But that's the simplest I could make them," Hotz said.

The modification leaves the iPhone's many functions, including a built-in camera and the ability to access Wi-Fi networks, intact. The only thing that won't work is the "visual voicemail" feature, which shows voice messages as if they were incoming e-mail.

Hotz collaborated online with four other people, two of them in Russia, to develop the unlocking process.

"Then there are two guys who I think are somewhere U.S.-side," Hotz said. He knows them only by their online handles.

http://www.cnn.com/2007/TECH/ptech/08/24/iphone.unlocked.ap/index.htmlSpent about a 1/2 hour at his site...it's not like everyone can sit down and do this but i PROBABLY would give it a try. If i got the phone for free that is.kid has to have a relative or somebody thats an electrician or something ? Kids like that should be able to receive some kinda nobel prize or something Very impressive. Was reading his blog today and amazing what he got for it. Quote from page:

Terry Daidone, the founder of Certicell contacted me this morning, and offered to make a trade for the iPhone. I traded it for a sweet Nissan 350Z and 3 8GB iPhones. I will be sending the iPhones, unlocked if they wish, to jpetrie(the first donater), gray(the reversing genius), and iProof(who is truly amazing at finding stuff online) Thanks a lot everyone. I leave for college tomorrow, and this has been a great end to a great summer. If I ever do anything more with the iPhone, it'll definitely be posted here. Also I contacted iphonesimfree and offered to verify on this blog their claims of a software unlock. No response YET...Wow.
His blog makes really interesting reading too, I think I'll bookmark that.
See the bit about the eBay auction - he was going to sell it on eBay and hand it over live on CNN.
What a guy.