Between the paid unlocking software and the recent free OpenSource unlocking software (here, here and here), you now have a variety of solutions to unlock your iPhone… The cheapest “paid” software is around $59 and can go up to $99.

What’s all the fuss about anyways?! Well, in case you didn’t know, the iPhone comes SIM locked… The way network operators attempt to do this is by locking your handset to a specific SIM card or network.

Should you attempt to use a different SIM card from another network in your phone, you will be presented with an error, such as “SIM Card Not Accepted“.

Why would they do that? Well, many operators offer handsets at a cut price to encourage you to sign up to their network. AT&T signed a 5 years exclusive deal with Apple to be able to sell the iPhone.

This means that in order to recoup their costs, AT&T has to ensure that you will use their service for an extended period of time. In this case, sign a new contract for at least 24 months (the question is, what happens after the 24 months period…).

Fortunately, it is possible to remove these SIM card restrictions via a process called unlocking. This will enable you to use any SIM card on any network in your handset, cutting all ties to your initial network provider.

The other good news is that it’s LEGAL! Engadget sat down with an attorney to answer some fundamental tech-law questions to help you stay out of trouble in this brave new world.

“It should not do any damage to your phone anyway because you can easily reflash all the old original files.

And you should not break any warranty. Would also be a good idea to backup any files you might need just in case!”

Whatever solution you pick, you will have to “jailbreak” your iPhone first. This will allow to write files onto your iPhone.

It’s a pretty simple procedure to do,1 click, but it can causes problems and there is a risk to brick your iPhone! Keep in mind you’re messing with the firmware, and file structure.

If you feel like you can do this, keep on reading… You can use either iNdependence, or iFuntastic. Once jailbreaked, you will basically flash your iPhone’s firmware with new files. This step can take anywhere from 2 to 30 mins.

So don’t panic if you don’t see the percentage bar move for part of the process.

The process works! Many different and authoritative sources have tested and successfully unlocked several iPhone, but they all disclaim that you do it at your own risk.

Personally, I am gonna wait some more… First of all because it’s still fresh and improvements will come soon I am sure. This is like a race for who is gonna provide the “best” solution ASAP! Meaning, bugs and failures.

Also, Apple could choose to re-lock the phone in a future update.

The benefits of unlocking your phone are numerous. Not only will you benefit from being able to use any SIM card on any network in your phone, but you will also be able to take advantage of roaming services offered by most major networks.

Unlocking your handset may also enable dual, tri or even quad band functionality, allowing you to use your phone in even more countries around the globe.

But unless you really need it RIGHT NOW, just take a chill pill and wait!