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The party is officially over. iPhone owners who are using their devices as a cellular modem without permission from AT&T are about to see a change in their monthly bill. The wireless provider is about to act on the warnings it sent to users in violation of its terms of service earlier this year.

AT&T currently requires a $20 tethering plan to allow the iPhone to share its cellular data connection with other devices. The tethering plan provides 2 GB of data on top of the 2 GB Data Pro plan costing $25 monthly. Here's the catch: those subscribed to the $30 unlimited data plan aren't allowed to sign up for tethering at all.

Apple was fined 3 million won ($2,830) by the South Korea communications regulator for collecting location data from iPhone users without their knowledge.

In April, U.S. researchers discovered that iPhones stored location files for up to a year. Apple claimed that they weren't tracking users, but that the files were used as part of their GPS system to track Wi-Fi hotspots and cell phone tower locations. The company eventually admitted that a year was too long, and changed it to seven days with the release of iOS 4.3.3.

Ater a four-month investigation, the KCC ordered Apple Korea to pay the small fine for violating their location information laws. The Korea Communications Commission said Apple has been collecting the data from June 22, 2010, through May 4, 2011.

Those unnamed sources close to Apple are at it again, this time they told The Wall Street Journal that the iPhone 5 will not be released until October, possibly late October.

John Paczkowski of the Journal said that an e-mail sent to Gizmodo from an AT&T employee has nothing to do with the iPhone 5. The so-called AT&T employee who sent the e-mail wrote that AT&T blacked out vacations at the end of September so the company can prepare for the new launch, but Paczkowski's inside source says otherwise: “I don’t know why AT&T’s calling for all hands on deck those weeks, but it’s not for an iPhone launch." The Wall Street Journal source added that the iPhone 5 will be released in October, but didn't give an exact date.

Tech bloggers, analysts and all those unnamed secret sources seem to agree on one thing; Apple will embrace the mid-range/pre-paid mobile phone market this year. What they don't agree on is how they will do it. Will Apple follow tradition and discontinue the iPhone 3GS, or will they give it a new look and offer it at an affordable price? Some people believe that they preparing to launch two new models, the iPhone 5, and a cheaper device to attract people on a budget. Decreases in the iPhone 3GS supply chain seem to suggest that the device is on its way out. This could be a sign that Apple is clearing space for their rumored new models.

Several sources revealed to 9to5Mac that shipments of the iPhone 3Gs are rapidly decreasing in other countries and even the United States. A decrease in iPhone 3GS stock could be a sign that the device's days are numbered.

If you've waited this long to buy an iPhone 4 or iPhone 3GS, it looks like patience will pay off at the end of this month. The leaked screenshot below shows internal documents indicating that third-party iPhone retailer Radio Shack is getting ready to slash prices on the iPhone starting today (July 31, 2011). To qualify for the new subsidized pricing customers must sign up for a two-year contract.

Both iPhone 4 models will drop $30 off the selling price, assuming the document sent to Engadget is authentic. This brings the price of the 16 GB iPhone 4 to $169.99 and the 32 GB model to $269.99. The 8 GB iPhone 3GS will also be reduced and is offered here for $19.99. We have already seen AT&T sell refurbished iPhone 3GS units for as low as one cent with a two-year contract.