Reuters reports: “Hackers have found a way to use Apple Inc’s iPhone on networks other than AT&T Inc’s, opening up the coveted device to rival carriers and overseas customers, according to a Web report on Friday.”

“A group called iPhoneSIMfree.com said it had developed a piece of software that, when installed on an iPhone, allows the use of rival mobile services such as T-Mobile, according to widely followed technology blog Engadget.com.”

“Enabling the combination phone, media player and Web browser to run on other networks — known as “unlocking” — has been a stated goal of many hackers since the iPhone hit the market in late June.”

“Several other methods for unlocking the iPhone have emerged on the Internet in the past few weeks, although they involve tinkering with the iPhone hardware or more complicated ways of bypassing the protections for AT&T’s exclusivity.”

“Inside the United States it’s not going to be a huge deal, outside the United States it’s probably going to be a big deal until Apple gets agreements in place with partners there,” said Jeremy Horwitz, editor-in-chief of iLounge.com, which tracks news of Apple products.

“The hacker victory could also be fleeting since it may be possible for Apple to render the unlock process useless with an update to the iPhone software, Horwitz said.”