First some back story, when Apple released the iPhone, they did so in the US only and with the condition that coverage was provided by AT&T. To ensure this, the iPhone was locked to prevent SIM cards from other mobile providers being used in the phone.
Since the initial release there have been plenty of attempts to circumvent the SIM lock on the iPhone. Today there were two announcements made in relation to the SIM lock being cracked. The first involves a hardware crack and the second involves a software update. Apparently the hardware hack takes about an hour to complete, while the software update takes a couple of minutes.
So what’s the fuss about? Half the planet went pretty much insane when it was released. But because the iPhone is SIM Locked, it can only be used in the US. With an unlocked iPhone it can be used anywhere in the world, and within the US, it can used with any provider.