Interesting point from iphone-dev about these chips:
The use of SIM-Proxies (small circuit boards/chips that sit underneath the SIM card) to provide GSM/UMTS service on your locked iPhone 3G is a method that we have always advised against. Early reports suggest that the 2.2 update disables the functionality of these devices. The techniques used were always unreliable and we are surprised that they have lasted this long.
Originally Posted by
Dubai Stu
Dumb question. If there are legal unlocked iPhones, why haven't people simply been able to reflash the grey market iPhones with this firmware?
The firmware is identical, it wouldn't do anything. Unlocking could in theory be done by
cloning an unlocked iPhone, but a) it can't be done at the moment and b) you'd end up with two iPhones sharing an IMEI, which is A Bad Thing (and illegal in many countries).