First reported by Wired.com, Apple's comments explained that jailbreaking allows hackers to alter the phone's baseband processor (officially called the BBP chip), which is the chip that enables the phone to connect to cell towers.
Apple stated in its filing that by changing the BBP's code, "More pernicious forms of activity may also be enabled. For example, a local or international hacker could potentially initiate commands (such as a denial-of-service attack) that could crash the tower software, rendering the tower entirely inoperable to process calls or transmit data. In short, taking control of the BBP software would be much the equivalent of getting inside the firewall of a corporate computer--to potentially catastrophic result."
More: http://news.cnet.com/8301-17938_105-10298646-1.html
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Apple stated in its filing that by changing the BBP's code, "More pernicious forms of activity may also be enabled. For example, a local or international hacker could potentially initiate commands (such as a denial-of-service attack) that could crash the tower software, rendering the tower entirely inoperable to process calls or transmit data. In short, taking control of the BBP software would be much the equivalent of getting inside the firewall of a corporate computer--to potentially catastrophic result."
More: http://news.cnet.com/8301-17938_105-10298646-1.html
