iPhone Tethering is Delayed because AT&T Isn't Prepared to Meet the 3G demand?

March 2010

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We had reported couple of months back about a rumor that indicated that Apple and AT&T were working together to bring the tethering capabilities to iPhone 3G.

However, after that we have seen that iPhone apps like NetShare which turned the iPhone into a Wi-Fi hotspot were banned from the App Store forcing similar apps like PdaNet and iPhoneModem to take the unofficial route of releasing these apps for the jailbroken iPhone.

According to MacBlogz, a reliable source from inside AT&T has informed them that the real reason iPhone tethering is being delayed is because AT&T isn't prepared to meet the 3G demand.

The process of tethering allows your laptop to use your iPhone's data connection to surf the internet, which would have been a treat to use with iPhone 3G rather than the first generation's Edge connection.

According to MacBlogz's source:

"Regardless of how many billions of dollars AT&T pours into their 3G network, it hasn’t been stable enough to handle all you iPhone users

AT&T Blackberry tethering is a different beast, as Blackberry users haven't caused nearly the strain of iPhone users on AT&T's 3G network."

AT&T offers an alternative data plan referred to as a Phone-As-Modem (PAM) plan for various BlackBerry and Window Mobile devices that allows users to tether their phones to laptops to use the phone as a wireless modem.

There might be some truth to the news that AT&T is playing it safe as apps like PDANet, iPhoneModem and NetShare have clearly shown that Apple's iPhone 3G has no limitations which would prevent AT&T from offering Phone-As-Modem (PAM) plan for it.

However, with the launch of BlackBerry Storm dubbed as another iPhone killer which offers in-built tethering capabilities round the corner I am sure there will be pressure on AT&T to allow users to use iPhone 3G's data connection to the surf the internet on their laptop will increase, until then those who are technically inclined can checkout PdaNet which turns the iPhone 3G into a Wi-Fi Router which seems to be extremely popular among users who have jailbroken their iPhones.

Whats do you think?

[MacBlogz via Gizmodo]

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