Macworld is reporting a hack that allows iPhone use for wireless carriers other than AT&T. This hack is brought to you by the same people who made Linux available on the iPhone, the iPhone Dev-Team.

The hack – code named yellowsn0w – will be available on New Year’s Eve 2008. The iPhone must be unlocked and have 2.11.07 baseband or earlier for it to work.

The application will be installed with Cydia so the hack will be available to both PC and Mac users.

Full instructions will be given by the iPhone Dev-Team on the last day of the year, and a live demo is promised before Christmas.

All the more reason to hold off on that Leopard update. Check back here for any developments on this groundbreaking hack.