Another step has been made towards unlocking the iPhone 3G so that you can use any SIM card in it. The “iPhone Dev Team” has developed a software tool that’ll unlock the device for you. They’re calling it “YellowSn0w”. The video above shows it in action – turning a locked phone into an unlocked one that accepts a T-Mobile SIM.

The tool’s due for release on Dec 31, so I advise you to spend the time between now and then desperately trying to get hold of an iPhone without signing up for a two-year O2 contract. Good luck with that.

Demo Video (via Gadget Lab)

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