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New iPhone OS Beta Includes a Tethering Option

Apple's new beta of iPhone OS 4.0 has a setting to set up tethering on AT&T's U.S. network. So far, AT&T has not allowed tethering on Apple's iPhone, although it allows the service on BlackBerrys. An analyst said the iPhone OS 4.0 beta setting for tethering may indicate that Apple is ready to allow users to set up tethering despite AT&T.

A new beta version of the upcoming operating system  for Apple's iPhone shows an option in the settings for tethering on AT&T's network . The carrier has not yet provided this service on Apple's devices in the U.S.
Tethering allows a laptop  or other devices to share a 3G connection with the iPhone through Bluetooth or USB. The fourth beta of OS 4.0 became available to developers on Tuesday, part of Apple's regular release every few weeks of a new build. While there are other minor changes in the new beta, tethering is capturing the most attention because of the multiplier effect it could have to quickly broaden mobile connectivity .

The indication of Internet tethering via AT&T is now explicit in the network settings of this beta. A screen to "Set Up Internet Tethering" instructs that "to enable tethering on this account, contact AT&T at 611 or visit http://www.att.com/mywireless." Button choices are to call, go to web site, or cancel.

Ross Rubin, director of industry analysis for consumer technology at the NPD Group, noted that the tethering option has been in the iPhone since last year, but has not been implemented by AT&T, the exclusive carrier in the U.S. AT&T has indicated it will eventually support the functionality, but hasn't committed as to when, saying it needs to ensure it can deliver the network capacity.

Rubin said the difference between how tethering is supported in the iPhone OS beta and previously indicates that "it might be shifting from being the carrier's prerogative to Apple saying the user can set it up." In its earlier incarnation, he said, tethering needed a service update or other action by the carrier for the user to see the functionality.

Battery Drain

He noted that iPhone tethering has been implemented in other countries outside the U.S. AT&T currently supports tethering for BlackBerrys, Rubin said, but the "sheer numbers of iPhone users and their proclivity to use data  services" apparently has the network concerned about overwhelming its service.

Rubin pointed out that using smartphones for tethering and as mobile Wi-Fi hot spots could quickly extend the wireless  capabilities of many devices, but the trade-off is it accelerates the battery drain if an electrical outlet is not used.

Both tethering and mobile hot spots use 3G connectivity. Tethering is limited to providing data access to only one other device at a time, such as through USB, while a hot spot turns the 3G into Wi-Fi for nearby Wi-Fi-enabled devices.

Rubin noted that the Palm webOS, which could become more popular now that it's owned by Hewlett-Packard, also supports hot spots. There have been indications that the next version of Google's Android operating system will support both tethering and hot spots.

Other enhancements in the new iPhone OS beta include a revised default home screen, where utilities like clock, calculator, compass and voice memo are in a Utilities folder instead of being displayed throughout the screen.