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These are instructions on how to software unlock the iPhone 3G for use with any GSM cellphone carrier.
Before you can follow these instructions you must have a jailbroken iPhone and you must be on the 02.28.00 baseband(modem firmware). This means that you must be running the 2.2 firmware. If you used PwnageTool to update to 2.2 from 2.1 you will have to rejailbreak using a QuickPwn jailbreak tutorial for the time being.
If you are not on firmware version 2.2 and baseband version 02.28.00 then you need to follow the previous post for How do I jailbreak iPhone 3g with v2.2 software.
Now assume you have restored your iPhone with 2.2 software and jailbroken your iPhone. Let's unlock it.
Step One
Press to launch Cydia Installer from your SpringBoard.

Step Two
Press to select the Manage tab at the bottom of the screen.

Step Three
Note, Cydia might prompt you to download an updated version of Cydia, go ahead update it.
Press to select the large Sources button
Step Four
Press the Edit button at the top right of the screen.
Step Five
Press the Add button at the top left of the screen.
Step Six
Enter http://apt9.yellowsn0w.com/ as the source url and press the Add Source button.
Step Seven
Once the source has been added press the large Return to Cydia button.
Step Eight
Press the Done button at the top right of the screen.
Step Nine
Press to select apt9.yellowsn0w.com from the list of user entered sources.
Step Ten
Press to select yellowsn0w from the list of packages
Step Eleven
Press the Install button at the top right of the screen. At the time of this post, the latest version of yellowsn0w is 0.96. You may download a newer version when it's available.
Step Twelve
Press the Confirm button at the top right of the screen.
Step Thirteen
After installation completes successfully press the large Return to Cydia button.
Step Fourteen
Now press the Home button then power off and power on the iPhone. You do this by holding down the power button for 3 seconds then moving the power slider that appears to the right. Press the power button again to turn on the phone.

Step Fifteen
You should now be able to insert the SIM of your choice!
Special Note:
If after all these steps, you still gets "No Service" on the iPhone. Try the following step:
* Turn on "Airplane Mode"
* Power off your iPhone
* Power on iPhone
* Turn off "Airplane Mode"
* You will see "Searching..." on the top left corner, after about 10 seconds, you will see signal.














