MuscleNerd has recently been sending out a series of tweets congratulating a Chinese hacker who goes by the name of Loktar_Sun for manipulating SAM (Subscriber Artificial Module) to unlock any model of the iPhone running the iOS 5.0 firmware plus (including baseband 4.11.08).
In order to download and install SAM to your iPhone you will need to add the following repo:
The process for unlocking your iPhone 3GS, iPhone 4 or iPhone 4S is fairly complicated, but the developer of SAM has mentioned he will be working on an update to make the process easier. For those who are interested in unlocking their iPhone running the iOS 5 firmware plus you can head on over to the official how to guide by clicking here.
Update: We have posted the how to guide available for unlocking your iPhone on the iOS 5 firmware generation here.
Note: This unlocking solution is not perfect and will only allow you to use the SIM card that you used to unlock your iPhone.