AT&T to Offer iPhone Tethering & O2 to Offer Pay-As-You Go

Tethering, as it applies here, is the process of using one device’s internet connection (in this case, the Apple iPhone 3G’s under AT&T’s data plan) to supply internet access to a PC or laptop.

AT&T currently offers tethering to Blackberry customers who pay $30 per month for the service.

Earlier in the year Apple was ordered by AT&T to remove an application from its iPhone App Store that provided iPhone tethering.

Steve Jobs, apparently, is in discussions with AT&T to offer the same service to users of the 3G iPhone.

In other iPhone related news, this from overseas, O2, the exclusive wireless carrier for the iPhone in the UK, has confirmed that they will offer a pay-as-you-go plan for iPhone customers as an alternative to a flat-fee monthly contract.

The iPhone 3G for Pay & Go will cost:

• £349.99 for the 8 GB model
• £399.99 for the 16 GB model