Last week, George Hotz, a New Jersey teen claimed that he unlocked his iPhone from its AT&T service to his own service, T-Mobile.

The AP reports: AT&T Inc. spokesman Mark Siegel said the company had no comment and referred questions to Apple. A call to Apple was not immediately returned. Hotz said the companies had not been in touch with him…

The hack, which Hotz posted Thursday to his blog, is complicated and requires skill with both soldering and software. It takes him about two hours to perform. Since the details are public, it seems likely that a small industry may spring up to buy U.S. iPhones, unlock them and send them overseas.

“That’s exactly, like, what I don’t want,” Hotz said. “I don’t want people making money off this.”

He said he wished he could make the instructions simpler so users could modify the phones themselves.

“But that’s the simplest I could make them,” Hotz said. The next step, he said, would be for someone to develop a way to unlock the phone using only software.

Since the details of both hacks are public, Apple may be able to modify the iPhone production line to make new phones invulnerable. The company has said it plans to introduce the phone in Europe this year, but it hasn’t set a date or identified carriers.

Hotz collaborated online with four other people, two of them in Russia, to develop the unlocking process.

“Then there are two guys who I think are somewhere U.S.-side,” Hotz said. He knows them only by their online handles.

Hotz himself spent about 500 hours on the project since the iPhone went on sale on June 29. On Thursday, he put the unlocked iPhone up for sale on eBay, where the high bid was above $2,000 midday Friday. The model, with 4 gigabytes of memory, sells for $499 new.

Hotz heads for college on Saturday. He plans to major in neuroscience — or “hacking the brain!” as he put it to the newspaper — at the Rochester Institute of Technology.

This is hilarious! Apparently what this guy did is perfectly legal. I bet Bill Gates is laughing his ass off right now.

I love Apple, I have never owned anything but a Mac, but this is what they get for having the nerve to make a phone that costs more than the average person’s rent. The decadence of it all! Do we really need YouTube on a cell phone? What’s going to happen is that instead of people watching the road while driving, they are going too busy watching SNL’s “Dick In The Box” skit.

Now, with all that being said, I’ll admit it, I want one, but I need that boy to figure out a way to make it Sprint compatible, because my contract won’t be up until 2012.

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