Free iPhone Unlock Software Those of you following Engadget lately can obviously tell that they have been all over the iPhone unlocking software, and over the last week they have probably tossed up a dozen articles on the topic. Is that a bad thing? Not at all. It just means that there has been a lot of competition to be the first to release a software unlocker hack for the iPhone.

Earlier this week Engadget had been covering a commercial app called iPhoneSIMfree that costs a whopping $99 to purchase! They don’t even guarantee that future iPhone firmware updates will not lock your iPhone again, so one simple upgrade could render your device useless.

Yesterday, however, a new app called iUnlock was revealed that doesn’t cost a dime to use! Initially there was no Graphical User Interface (GUI) available and required that you stumble through the command prompt, but the developer quickly whipped up a Beta build of the iPhone unlocking software with a GUI. It has some graphical quirks right now, which can be seen in the screenshot, and it does take 20-minutes to complete. The point is that you’ll walk away with your iPhone unlocked for free, and a faster version is expected to be available over the next few days.

So now what’s AT&T going to do? The original iPhone unlocking software was never released because of "friendly advice" from the people over at AT&T. The iUnlocker software, however, is free and will quickly propagate through all of the file sharing networks. This thing is going to spread like wildfire, and I don’t think there will be any stopping it.