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TetherMe, available in Cydia.
AT&T can easily spot customers that are using unauthorized tethering apps

In March, AT&T began cracking down on customers it believed were jailbreaking their iPhones and using "unauthorized" apps to tether data for no extra fee. Text messages were sent out to suspected customers with an ultimatum: Stop tethering, or we'll automatically enroll you in our $45 DataPro plan.  

The folks over at Android Police point out that jailbroken iPhones are easy to pinpoint when tethered, because many tethering apps use the same technique as the one inherent in iOS. When tethered, the iPhone "sends traffic through an alternate APN (AT&T access point/router) for the express purpose of identifying the traffic as tethered data. This makes it extremely easy for AT&T to identify whether or not an iOS device is utilizing tethering, and just how much of their data is consumed via tethering."

The customers AT&T is likely targeting most are those with the grandfathered unlimited data plans. They can tether their hearts out, without worrying about going over their allotted data cap.

IPhoneDownloadBlog has a list of iPhone tethering apps. MyWi, the most popular one, uses the same APN as the iPhone's standard tethering system, so it is not recommended if you want to go undetected. Two other alternatives are PdaNet -- which offers a "hide" function -- and TetherMe.

However, some users in the comments section of iPhoneDownloadBlog are saying that even with the updated versions of these tethering apps with hiding functionality enabled can’t escape AT&T’s wrath.

“I used the new PDANET since the day it was released a few weeks ago,” wrote one commenter. “Shortly after and consistent with 4.3 upgrade I received an email from ATT.”

So perhaps no one is safe anymore when it comes to unauthorized tethering on the iPhone.

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RE: What about Android?
By Solandri on 5/9/2011 12:28:42 PM , Rating: 3
Sprint has been able to track tether'ers from day 1, although they haven't done anything about it.

Sprint gained this ability in 2003/2004 shortly after they rolled out 3G. The phone I got at the time (Sanyo MM-9000) was the last phone they made on which they couldn't tell if you were tethering or using the phone's built-in browser. They pulled it off the shelves about a month after it was released for this reason.

The bigger issue though is that if the carrier has a data cap, then they shouldn't care whether or not you tether. It costs them just as much money to transmit 5GB of phone browser data to your phone as it costs them to transmit 5GB of VPN data to your laptop tethered to your phone. 5GB is 5GB. If your cap is 5GB, they shouldn't care whether you use it tethered or not.

This artificial distinction between tethered and untethered dates back to the days when data plans were unlimited. Data consumption while tethered could be a lot higher than when using the phone's browser. So on an unlimited plan, there was good reason to distinguish between tethering or not.

By trying to enforce data caps AND charge people extra for tethering, they are trying to have their cake and eat it too.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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