After an announcement by American leading telecommunications company AT&T that they will allow users to use its 3G network, many believed it interpreted as free tethering for all iPhone users.

However, this is not the case.

Tethering allows phones to act as a middle device, offering broadband to a computer without the need for a separate broadband modem.

The iPhone itself supports tethering but providers need to officially back the service to allow users to utilize the service.

Speaking form America, an AT&T spokesperson said:

“Whenever we offer new features, we want to offer the best possible customer experience. For tethering, we need to do some additional fine tuning to our systems and networks so that we do deliver a great experience.”

A few weeks ago MMS was finally allowed for all iPhone users, years after it was available for all other mobile handsets, and years after the phone had the capabilities to allow it.

This case is yet another example of iPhone owners patiently controlling the evolution of the handset.

Tethering will be available one day on the apple mobile phone, but not for now. That is the bottom line.

MMS messaging is coming…

It was announced a few weeks back and it was yet again confirmed this week that MMS for iPhone will be available today, September 25 2009.

Late morning, Pacific Time, on Friday, the new carrier settings update enabling MMS should be live and ready to download through iTunes.

This will come in the form of a carrier update that you will have to download via iTunes.

But while the news is great, don’t expect to see MMS working on your iPhone as soon as you read this.

The AT&T will be systematically activating groups throughout the day, starting at 10 AM Eastern time. Also don’t forget that to enable MMS on your iPhone you must first connect to iTunes and download and install an updated carrier file.

That is, if AT&T’s network holds up. It is predicted that millions of iPhone users will rush to test the new service today, causing a jam in the network or even a complete crash.

The possibility of this outcome has left AT&T feeling fairly nervous, and according to the Macrumours website:

“Early testing has been a little rocky, with AT&T seeing a fairly significant test outage yesterday that has them rushing to beef up their MMSC messaging servers. Estimates among those working on the project are that traffic on AT&T’s wireless network will be about 40% higher all day on Friday as iPhone users fire pictures and video at one another.”

Let’s just hope the jam doesn’t affect things too severely so we can all finally enjoy the MMS feature on our iPhones.

Four Australian carriers – Optus, Vodafone, Telstra and Virgin Mobile – are already offering the long-awaited 3GS and a fifth company , 3 Mobile, is soon to join them.

Each carrier is offering several “$0 upfront” plans and you can also purchase a 3GS handset outright from Vodafone or from an Apple store.

At the top of the new phone range is the 32GB 3GS.

You can pick up this model for “$0 upfront” several ways.

Optus will charge you $99 a month for unlimited calls and 1.5GB of included data on a 24 month contract.

Vodafone will charge you $114 a month for unlimited calls and 2GB of included data on a 24 month contract.

Telstra will charge you $150 a month for $1500 worth of calls and 150MB of included data on a 24-month contract.

The next model to consider is the 16GB 3GS.

Optus is offering a $79 per month plan that includes $1250 of calls and 1GB of data on a 24 month contract.

Vodafone will set you back $69 a month for $400 of calls and 1GB of data on a 24-month contract.

Over at Telstra, you need to pay $100 a month for $90 of included calls and no data allowance on a 24-month contract.

If you don’t want to pay the higher prices for the 3GS model, you could pick up the original 8G 3G model at a lesser cost.

Optus and Vodafone offer basically identical plans here. $59 per month for $350 included calls and 500MB data.

Telstra will charge you $60 per month for $50 included calls and no data.

Another option is to bypass the contract plans completely and buy your own handset outright.

The only two ways to do this at the moment are through Vodafone and Apple directly.

Apple is the cheapest, offering the 32GB 3GS at $1040 and the 16GB version for $879.

Vodafone will sell you a 32GB handset for $1129 and a 16GB model for $929.

As you can see, the iPhone market has changed with the introduction of the 3GS. But it is not yet clear if these plans will become cheaper in the short term or over a longer period.

Many consumers miscalculate the monthly cost of using their iPhone, thanks largely to the cost of buying apps and the costs of using data.

It is probably a good idea to wait until 3 Mobile releases its plans before committing to a contract.

The new carrier might be able to offer a cheaper or better all-round deal than the current options.

Tethering allows iPhone 3G S users to use the 3G connection on their iPhone to connect their notebook computer to the internet over USB or Bluetooth.

Customers need to pay the $9.95 month fee to allow tethering and consume data on their existing iPhone plan.

Optus has already begun changing its pricing structures by adding data packs that are an added cost over subscription plans and the tethering fee.

An Optus 2GB “Mobile as Modem” pack is AU $24.99 a month while a similar 6GB plan costs $44.99.

However, one prominent Australian mobile phone network that has thus far been left out of the mix is 3. Although a popular Australian network by any standard, 3 has for some reason has not been able to offer the iPhone to their customers as part of their plans.

Customers loyal to 3 but desperate to get their hands on the iPhone only have one option: buy an iPhone outright and subscribe to one of 3’s various BYO phone deals.

At the time of writing, 3 offered a 3iSIM card on a 24-month plan on various cap prices. The caps include calls and SMS as well as data allowances, with the minimum cap offering 1GB of data – quite a large amount compared to Vodafone’s 200MB offering and Optus’ 250MB that isn’t much better.

The cap values include:

$49 cap: $350 calls, 1GB data, $240 or 300 minutes for calling other 3 mobiles
$69 cap: $650 calls, 2GB data, $350 or 500 minutes for calling other 3 mobiles
$99 cap: $1000 calls, 2GB data, $1750 or 2500 minutes for calling other 3 mobiles
$129 cap: $1200 calls, 2GB data, $1750 or 2500 minutes for calling other 3 mobiles
$149 cap: $1600 calls, 2GB data, $1750 or 2500 minutes for calling other 3 mobiles
$199 cap: $2000 calls, 2GB data, $2000 or 3000 minutes for calling other 3 mobiles

Optus $59 ‘yes’ Cap Plan for iPhone 3G

Monthly fee: $59
Included value: $350 calls and text
Data allowance: 500MB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract, $35 on 12 month contract
iPhone 3G 16GB model monthly fee: $9 on 24 month contract, $46 on 12 month contract

Optus $79 ‘yes’ Cap Plan for iPhone 3G

Monthly fee: $79
Included value: $550 calls, unlimited text
Data allowance: 700MB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract, $30 on 12 month contract
iPhone 3G 16GB model monthly fee: $4 on 24 month contract, $41 on 12 month contract

$69 Vodafone Cap Contract for iPhone 3G

Monthly fee: $69
Included value: $400 calls and text
Data allowance: 1GB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract
iPhone 3G 16GB model monthly fee: $5.05 on 24 month contract

$79 Vodafone Cap Contract for iPhone 3G

Monthly fee: $79
Included value: $550 calls and text
Data allowance: 1GB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract
iPhone 3G 16GB model monthly fee: $5.05 on 24 month contract

$114 Vodafone Cap Contract for iPhone 3G

Monthly fee: $114
Included value: Unlimited standard talk and text
Data allowance: 2GB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract
iPhone 3G 16GB model monthly fee: $5.05 on 24 month contract

Virgin $70 Free to V Cap Contract for iPhone 3G (8GB)

Monthly fee: $70
Included value: $520 calls and text
Data allowance: 1GB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract

Virgin $100 Free to V Cap Contract for iPhone 3G

Monthly fee: $100
Included value: $520 calls and text
Data allowance: 5GB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract

Virgin $115 Topless Contract for iPhone 3

G

Monthly fee: $115
Included value: Unlimited standard talk and text
Data allowance: 1GB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract

Telstra iPhone 3G (8GB) Package $0 Upfront

Monthly fee: $80
Included value: $70 calls and text, $10 browsing pack
Data allowance: 170MB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract

Telstra iPhone 3G (8GB) $70 Package $59 Upfront

Monthly fee: $60
Included value: $50 calls and text, $10 browsing pack
Data allowance: 170MB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract

Telstra iPhone 3G (8GB) $40 Package $279 Upfront

Monthly fee: $40
Included value: $25 calls and text, $10 browsing pack
Data allowance: 160MB for mobile internet data
iPhone 3G 8GB model monthly fee: $0 on 24 month contract

If you want an iPhone, you will most likely have to go for a 24-month contract. The Australian service providers offering the iPhone (Vodafone, Optus, Virgin and Telstra) are all challenged to respond to the iPhone by offering data as an included part of their plans.

The result? Data is included in all their plans. The question is, how much will you use?

Ask yourself the following questions:

What are you getting an iPhone for?
Is it the cool iPod feature? The choice of applications you can download and access on the go? Is it mobile internet? Figuring out the answer to these questions will help you determine how much data you need. If you get an iPhone without the right amount of data allowance for your needs, you’ll be in trouble. The excess usage fees are hefty and all the networks charge for them. They will turn the iPhone’s fun into pain.

If you decide that you want the iPhone for email and other applications (Facebook, Twitter, maps, email, etc.). Remember that email and maps too use data on the 3G Network so if you plan to use these features a lot, you will need a generous data plan. A plan offering 50 – 300 MB probably won’t cut it if you’re a heavy user, so closer to 500 MB per month will give you the best iPhone experience.

Where are you going to use your iPhone?
Coverage is extremely important. After all, if you buy a little computer that comes alive when you access the mobile internet, there is no point in rendering it useless by using it in an area with no 3G data coverage.

Inside the big Australian cities, you should have little issue with coverage, other than the usual black spots. Outside the city, there is no doubt that Telstra have the widest coverage with their Next G network. Regional towns have varying degrees of coverage, depending on the area. For example, Byron Bay has solid Optus 3G coverage. We suggest checking the coverage maps – better still, physically checking the area itself with a 3G device – before investing in an iPhone plan.