The iPhone 3G has made it entry to the top 50 best Christmas gifts of all time. However, there are more good news in store. According to a report in the Channel Web, the iPhone 3G will be available in unlocked on the New Year’s eve this year. The what and how of this unlocking will be made available  just before the Christmas this year through the streaming of a live video.

This unlock will be installed via Cydia, hence extending the jailbreaking advantage beyond Mac. This unlocking has certain requirements though:

1. This unlock method requires you to have iPhone 3Gs that have the 2.11.07 baseband or earlier. The iPhone Dev team infact tells the users to “refrain from updating your baseband, regardless what version you’re at,”

2. Requires a jailbroken iPhone.

The buzz in the air is that the unlock is already completed and that the holy pirates of the iphone Dev team are now busy packaging the unlock process in the form of a user friendly application:

…is currently being packaged into a user-friendly application with the simplicity that you see in QuickPwn or BootNeuter.

Who is behind this promise to make the iPhone a more portable device for carrier independence? The hack yellowsn0w.  However, while using the iPhone on T-Mobile networks might be a good enough incentive for going for the practice of unlocking and jailbreaking it, the biggest gainers will be globe-trotting iPhoners as they will be able to choose from a host of carriers from all along the globe.

As we reported yesterday, this tit-for-tat between the Apple and hackers are showing no signs of slowing down.