The iPhone team has created software that breaks out the iPhone with new firmware Pwnage 2.0 such as the iPhone 3G. The firmware allows you to install programs without having to use the Apple App Store. The new Pwnage 2.0 lets its users run applications from a third party as well as the community of the new iPhone and original iPhones that have been upgraded. Before Pwnage 2.0 was released, there was nothing but tutorials teaching how to downgrade to firmware 1.4, but only for upgraded original iPhones.

There is still not SIM lock hack available for the current firmware to remove the necessity of using a specific service provider. Since people can only get the iPhone 3G if they sign a contract at the time of purchase in most countries, like the US and the UK, a SIM lock hack is hardly worth the time.

Before, in the US or the UK, you were able to purchase an iPhone that had a SIM locked to the AT&T or O2 network, but were not required to sign a contract. People were able to unlock iPhones using a SIM lock hack before the iPhone was activated.

In countries that are offering the iPhone 3G without a contract, like Belgium, the iPhone is already unlocked at a substantially higher cost than that of the locked phones in countries that do require a contract.