How to Flash the Baseband on the 3G
One hack some users perform on their iPhones is to flash the baseband of the phone with a baseband version that unlocks the phone. This allows users them to use the iPhone 3G on any compatible GSM provider, not the original carrier. You can use SIM cards from different providers to save on wireless costs when your iPhone is unlocked. You will need a jailbroken iPhone 3G for this to work, and you'll need to use the Fuzzyband app, which helps flash your baseband.
Instructions
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1
Open the Cydia application on your jailbroken iPhone 3G.
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2
Tap the "Search" icon to open the search tab.
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3
Type "Fuzzyband" into the search box and tap "Search."
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4
Tap on the "Fuzzyband" application in the search results, tap "Install," and then tap "Confirm." Fuzzyband will be installed on your iPhone 3G device.
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5
Press the home button.
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Tap the "Fuzzyband" icon on your iPhone's home screen.
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7
Tap the "Downgrade" button. This flashes your iPhone 3G's baseband with a new baseband that unlocks the phone and allows use with any GSM carrier.
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Tips & Warnings
This process will only work with a jailbroken iPhone 3G. Non-jailbroken iPhone 3Gs will not have the Cydia application required to download Fuzzyband and complete the task.