Hack the iPhone – Partially unlocked iPhone will allow you to use existing AT&T SIM

The iPhone hackers at iPhone Dev Wiki are claiming to have partially unlocked the iPhone using an application called iASign. It doesn’t unlock the iPhone fully so you can use it with other companies but the breaking news is it will allow you to use any of the existing  prepaid Cingular, AT&T, and AT&T’s MVNO’s SIM cards so you don’t need to get a 2-year contract with AT&T.