iTether, USB tethering app for iPhone pops up in App Store

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A new app showed up in the iTunes App Store for the iPhone last night that allows users to tether their iPhone's data connection to their PC or Mac without purchasing an appropriate tethering plan from their carrier. The app requires the use of a USB cable, and offers unlimited tethering without a recurring monthly fee.

Developed by the same company that has offered the Tether app for BlackBerry smartphones for years, which offers the same functionality, iTether requires the installation of a helper program on the PC or Mac and the app on the iPhone to work. Once both are installed and running, a user just has to plug their iPhone into their computer and click connect and away they go.

Apple traditionally has not allowed these types of internet sharing applications in the App Store, since iOS offers this function natively (though, it requires a tethering plan from a carrier). It is not clear whether this app will remain in the App Store for long, so those that want to take advantage of it might want to purchase it and install it while they can. Also not clear is how the app reports its data usage to the carrier. If it reports its usage as tethering data instead of phone data, users might be notified by their carrier that they need an appropriate data plan with tethering or face disconnection, a message that AT&T has been fond of sending to "illegal" tetherers for quite some time. iTether costs $14.99 and is available in the App Store now. It requires iOS 4.2 or later.

Update: And as expected, Apple has apparently removed iTether from the App Store. It is still coming up when we search for it, but it is not longer possible to purchase or download it. Hope you got it while it was available if you were interested! [via 9to5Mac]