UPDATE: Hackers Reveal How To Turn IPhones, President Into Modems
June 18 2009 - 6:37PM
Dow Jones News
Hackers have designed guides and programs for turning Apple
Inc.'s (AAPL) iPhone and Palm Inc.'s (PALM) Pres into Internet
modems, a function many smart phone owners want but U.S. mobile
phone carriers have been reluctant to allow.
As of Thursday, instructions and software for using iPhones as
modems had popped up on at least half a dozen Web sites, including
the popular Gizmodo gadget blog and Germany's iPhone-notes.de.
Similarly, guides for turning the Pre into a modem have also
appeared on the Web.
The function, known as "tethering," takes advantage of a smart
phone's always-on Internet connectivity. When the smart phone is
tethered to a laptop, a user can surf the Web via the smart phone's
connection.
The interest in freely "tethering" iPhones and Pres underscores
the slow response by networks to growing demand for the function.
Neither AT&T Inc. (T), which supports the iPhone, nor Sprint
Nextel Corp. (S), which supports the Pre, have authorized
tethering.
Critics say the U.S. carriers' reluctance to support tethering
is confounding, particularly because the two carriers both support
the service for any number of other devices, including the
BlackBerry from Research In Motion Ltd. (RIMM). The service costs
up to $60 a month.
Analysts say one possible explanation for the different
treatment could be the usage habits of iPhone and Pre owners in the
U.S. Because the devices are built specifically for surfing the Web
and downloading software, carriers could be concerned tethering
would cause a spike in data traffic over the systems, something
that might choke the networks and damage the experience for others,
they say. By contrast, BlackBerry owners tend to use less taxing
functions, like email, that are unlikely to clog the network.
"IPhone users are particularly active in using the data features
of their device," said NPD Group analyst Ross Rubin.
AT&T spokesman Mark Siegel said the company would offer
tethering in the future, but declined to say when. A Sprint
spokesman said tethering is currently not part of the array of data
plans offered to Pre owners. He wouldn't comment further.
Already, carriers have gotten a taste of the strain spikes in
mobile data can cause.
In May, AT&T's network in Austin, Texas, was overwhelmed by
SMS messages, tweets, emails and other wireless data as thousands
of iPhone-toting music fans descended on the city for the South by
Southwest Festival. AT&T had to quickly buttress the network
with additional gear amid complaints about slow Web browsing and
dropped calls.
AT&T's Siegel said the company was investing in its wireless
network and is working to double its maximum speed by 2011. It is
also working on a next-generation network that would double its
capacity.
-By Ben Charny, Dow Jones Newswires; 415-765-8230;
ben.charny@dowjones.com