Months before the iPhone OS 3.0 is released to the masses, one entrepreneurial developer has managed to crack into the phone's Internet tethering capabilities. Steve Troughton-Smith unearthed the iPhone's tethering preferences pane, connected his iPhone to his Mac via USB, and was allowed to use the phone as a modem. Problem is, he has no idea how he did it. From Twitter, he says, "To all: I have no idea how I did it. Sorry! I was hacking around with APNs in the Carrier.bundle itcc file."

The question now is whether carriers want to shoulder the burden tethering would create on its networks -- and the burden is huge. Earlier this week iPhones practically crippled AT&T's 3G network at Austin's SXSW festival, and that was just the phone. Imagine hundreds of thousands of computers connected to that same network and the damage it'd wreak.

If you have a jailbroken iPhone, Internet tethering is readily available. When OS 3.0 rolls around, Apple will kick all jailbreakers out of the party -- temporarily. The Dev-Team announced that 3.0 is definitely "jailbreakable" but that those using Yellowsn0w -- a software-based jailbreaking system -- should exercise restraint and wait for the "official" set of keys.
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