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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.
"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.