iPhone tethering now for free: will AT&T catch me?

By now, most of our readers have heard the news that with a very easy hack, you can enable tethering for free on your OS 3.0-updated Apple iPhone 3G on the AT&T network in the United States, even though this feature is not scheduled to be available from the carrier until “some time in the future,” according to AT&T officials. For those unaware, tethering simply allows you to use your iPhone as a broadband wireless modem, connecting your MacBook to the internet via AT&T’s 3G network.

To enable tethering, you can follow this three step guide from 9to5 Mac, which broke the news on tethering being available. It’s easy and it just…works, as promised in the WWDC presentation launching OS 3.0.

But…doesn’t it seem too simple? Like it’s too good to be true? After all, with just a free software update, we were getting free 200K/sec speeds with just a little more latency that’s standard for most wireless broadband options. Will AT&T be pulling the plug soon?

Maybe not so soon: according to Cult of Mac, who got an AT&T representative to comment on the record, AT&T is looking to Apple to close this loophole:

In response to questions about tethering with iPhone 3.0, Mark Siegel, AT&T’s Executive Director of Media Relations told Cult of Mac Thursday “anything to do with the software and what it can or can’t do is an area that Apple needs to comment on.” He had no further comment from AT&T regarding tethering on the iPhone, other than to reiterate that “We will offer a tethering plan in the future but have not set a date at this time.”

So, basically, we think AT&T is going to turn a blind eye towards this for the time being. Though the news is all over the place, the vast, vast majority of iPhone users are going to be either unaware of the option or too timid to make the (minor) modification.

Furthermore, AT&T may be thinking that they’re already charging all iPhone customers $30/month for unlimited data on top of their already-spendy plan, and would be asking for a PR mess if they were to start hassling customers without having their network ready to handle an overt tethering plan offering down the road.

That said, how can you tether and not draw any undue interest from AT&T? Don’t use it as your primary means of internet use or download gobs of data. Generally, amongst U.S. carriers, “unlimited” data plans aren’t actually unlimited–you start to draw notice at over 5 GB of data downloaded per month. Keeping in mind that the average iPhone user already uses 400 MB/month and the average smartphone user in the U.S. apparently uses 10 times less than that, according to recent reports, at about 40-50 MB/month, you can tether a good bit at your convenience without drawing much notice.

We imagine that when AT&T’s network has been beefed up (an ongoing, $18 billion-per-year investment) and an add-on plan for tethering is readied, AT&T will offer the option at an additional $15-30/month, crack down on “free” tethering, and capture a little revenue from users who wish to take advantage of this option. For now, enjoy the ride!

8 Responses to “iPhone tethering now for free: will AT&T catch me?”

  1. Um, you are NOT contracted “unlimited data” from AT&T. You did contract “unlimited” data. In that, they do have an explicitly cap on data transfers, and they do explicitly limit what kind of data is permitted to be transferred over their network (including bizarre things like you can’t transfer video, but you can watch YouTube).

    IOW, think of ‘unlimited’ as not being limited to which web sites you can surf to, rather than how much actual data you can get.

  2. I’m all over free.

    Tethering without being provisioned isn’t about free - it’s about stealing. Disclaimer - I have a data card from ATT and I am provisioned to tether on my VZW Storm; I am a customer of both wireless providers and of Clear.

    It’s hackers and abusers of the wireless data that have led to data caps and degraded QoS of the wireless networks. Any self-entitled violator of a provider’s TOS should be fined. How would you react if a silent third party siphoned off of you - used your services, redirected your ad revenue, slowed down access to your web server? You’d be pissed off and consider legal action - so don’t be a hypocrite by stealing from another company and (essentially) bragging about it. I hope you get busted and sent a bill for your transgression - I’m paying for a service and trying to run my small business honestly while you’re filching and dumb enough to boast about it.

    Shame on you.

  3. Loaded the Tethering file last night and sent out
    76,299 kb to test out the Bluetooth and Cabled abilities! It worked beautifully.

    This morning I checked my data usage on ATT and say that tethering was listed under [wap.cingular] vs. the usual data transfer as [phone]. Curious as to whether this will be flagged by ATT for additional charges.

    As for me, $30/month for Unlimited Data is adequate no matter how that data is used.

    Could be to good to be true!

  4. @dave, I’m tired of these loopholes corporations try to justify their terms. When they advertise they say unlimited, not “unlimited.” Therefore I hold them responsible.

    @Chris, We are already being billed for unlimited data on our phone. We are still using the phone data it’s just being routed to a computer. Once the data gets to my phone, why should a company be able to tell me I can’t forward it to my computer? That’s ridiculous. (P.S. what do you work for AT&T? Because you definitely act like a shill)

    @CB, I too am worried about this.

    Hopefully AT&T realizes that charging twice for the exact same thing is unacceptable. I don’t care if the data is coming from my computer. Its going TO my phone, which I pay for unlimited data. If they want to limit me, don’t call it unlimited.

    And no, advertising it as Unlimited* with the smallest asterisk ever and some legalize as to some arbitrary data amount isn’t sufficient for me.

  5. It’s funny how corporations can screw us the consumer, and then people like the guy above act like were the crooks! We pay DAMN good money for the iphone data. I pay over 100.00 a month. And for every person thats usings “LARGE” amounts of data, there are people that use VERY small amounts. So do they get a discount for not using a large amount? No they still pay the 30.00. I’m sick of corporate america screwing us, getting the country in the situation it’s in, and then people are made to feel bad because we want to, God forbid, get what we are paying for? And just for the record, read the Terms, unless changed, last I saw the iphone plan is NOT a tethering plan, so there is NO cap! It also says “Unlimited” not..”unless you tether or hack slingbox on iphone. Which by the way I would use on my N95 on 3g no problem, with no hacking.. so figure that out!. So if they give me tude, I’ll tell them screw your iphone, go back to using my N95 and I’ll keep Sling running on it 24/7 for 31 days in a row each month, and then will really see some data usage, and nothing they can do about it. So what makes sense?? OO and MLB app can STREAM games via 3G, no problem. So MLB does not strain the network but Slingbox and tethering does hu? Hey, tell them send me a bill, then I’ll tell them cancel my contract and shove there iphone up there iasses!

    (Stepping off soap box).

  6. If they want to charge me for tethering, i’m pretty sure it makes sense for them to transfer my roll over minutes and credit my account before i get charged.

    phones will continue to get cheaper alone with data and call plans.

    remember when you paid for long distance on a land line?

    flat rates will be a thing of the past

  7. im not going to say anything… most of u took the words right out of my mouth. im paying a good $142.87/mo. so u know what i think about AT&T?

    http://www.mrpoop.com/images/longpoop.jpg

    im still using tethering thats the way it should be. thats the service we should be receiving for their overrated plan rates. my friend has 3 t-mobile lines all unlimited and she pays the exact amount as me.

  8. rofl! thats a nice long rope. yeah man screw AT&T. 3G will be working on an iphone soon for T-Mobile. they have more REASONABLE plan rates.

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