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Its finally here! the unlock for the 05.11.07 baseband on the iPhone.
Blacksnow is now available to users and can be downloaded through Blackra1n RC3 which has been released by Geohotz.

Note: All those with Blackra1n.app RC1 and RC2 on their iPhone can tap to launch the app and click on ra1n, now replaced by 'Icy', to update to Blackra1n RC3. Once updated, launch Blackra1n.app RC3 and tap on Snow to unlock the iPhone on baseband 05.11.07

And for the first-timers, all you have to do is Jailbreak the device using Blackra1n RC3 and then Unlock it using the Blacksnow tool. Instructions have been provided.

Important: Only those who wish to unlock their iPhone with the baseband 05.11.07 should attempt to follow this hack. A tutorial for those who had Jailbroken using Pwnage but wish to unlock using Blacksnow would be provided shortly.