iPhone- (which combines an innovative touch-screen interface with the media-playing abilities of the iPod, is sold only in the U.S)is hacked by a 17 year old teen - George Hotz. 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 AT&T that is compatible with the iPhone’s cellular technology.

Hotz posted Thursday to his blog, is complicated and requires skill with both soldering and software. It takes him 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.

Hotz himself spent about 500 hours on the project since the iPhone went on sale on June 29. On Thursday, he put the unlocked iPhone up for sale on eBay, where the high bid was above $2,000 midday Friday. The model, with 4 gigabytes of memory, sells for $499 new.

Click here to see his Blog posts 

Click Here to Watch the Video