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Yes, you are reading that right. Engadget has confirmed that the iPhone has been unlocked using software only. Apparently the folks over at iPhoneSIMFree.com (I kept reading it as iPhones IM Free) contacted Engadget (why not us?) and basically gave them the heads up and sent over a few screen shots of the newly unlocked iPhone. Everything is reported to be working out of the box except for YouTube. Safari, Mail, SMS, and Google Maps all work out of the box after possibly changing a few network settings. Oh, and that phone feature works too, but it’s the 21st century, who uses that anymore?

A few things to note from their entry:

The General -> Network menu now has an EDGE network settings area where you can input your carrier’s APN and username / password. We put in our T-Mobile info, and were immediately online. (Apparently these hidden menus were added in the 1.0.1 update, they tell us. How convenient!)

Visual voicemail isn’t in the cards—sorry. That was, of course, to be expected because it’s a special AT&T network-specific feature right now. When you hit the voicemail button you are taken immediately to your carrier’s default voicemail line though, and that works just like it would on any other phone.

They are also claiming that the unlock is restore/upgrade proof and will not be affected in future software updates. They did a reinstall of 1.0.2 and it was still there, but hopefully it will still be unlocked when 1.0.3 is released and from then on.

Image and Story Via [Engadget]