SAN FRANCISCO (Reuters) - A group called iPhoneSIMfree.com said it had developed a piece of software that, when installed on an iPhone, allows the use of rival mobile services such as T-Mobile, according to widely followed technology blog Engadget.com. AT&T has an exclusive two-year agreement to provide phone and data services for the iPhone in the United States. Apple is in talks with carriers in several European countries to launch the device there by the end of the year.

Enabling the combination phone, media player and Web browser to run on other networks — known as “unlocking” — has been a stated goal of many hackers since the iPhone hit the market in late June. “The unlock process took only a couple of minutes. From our end it was totally painless,” Engadget said. Several other methods for unlocking the iPhone have emerged on the Internet in the past few weeks, although they involve tinkering with the iPhone hardware or more complicated ways of bypassing the protections for AT&T’s exclusivity. AT&T spokesman Mark Siegel declined to comment on the Engadget report and an Apple spokesman could not be immediately reached. An e-mail sent to iPhoneSIMfree.com was not immediately answered.

Source: Reuters.com