It's a good news for those of you who really want to buy an iPhone 3G but prefer carrier's networks outside AT&T, or who just want buy an iPhone from another country. A group, known as Dev-Team, who created a software unlock for the iPhone 3G so that the device could run on other carrier’s networks, just featured a live demo of the yellowsn0w - the software's codename.

So you can enjoy this first public demo of the iPhone 3G unlock, courtesy of Dev-Team member MuscleNerd. You can see it that the team was able to get T-Mobile service working on a previously locked AT&T iPhone 3G. Yay!

The team has set the release date of their free unlocking tool for New Year’s Eve 2008 (so you just have to wait 9 more days to try it yourself ). As they warned before, the unlock is only for the iPhone 3G with a baseband of 2.11.07. To figure out which baseband you have, simply go to Settings-> General-> About-> Modem Firmware.