AT&T

AT&T does not currently allow tethering on the iPhone even though Apple's iPhone OS 3.0 includes the feature. The company is still deciding what a tethering data plan for iPhone would cost and how it would be structured.

Tired of waiting? If you have an iPhone 3G or 3GS running OS 3.0 and a computer running iTunes 8.2 on Mac OS X here's how to activate tethering. You will be able to connect your computer to the AT&T data network using USB or Bluetooth via your iPhone.

Live video iChat on the iPhone may be something we would expect from Apple, but is the timing and technology ripe for this functionality to come out this summer? Some reports are reading into AT&T network upgrades to 7.2 Mbps as a sign that they are bracing for more bandwidth demands from their iPhone subscriber base, and that one of those demands could be live video chat.

The longer AT&T can deliver what Apple needs for its hardware, the longer the company stands to profit from an exclusive arrangement to offer the iPhone on its network. Other leaks and data that point in the direction of a front facing camera on the next generation iPhone have also surfaced.

The AT&T network is about to get faster. Twice as fast as current 3G speeds, using HSPA 7.2 3G wireless technology. This in-progress upgrade to the AT&T network will make speeds of up to 7.2 Mbps possible later this year.

Apple has reportedly designed the next generation iPhone 3.0 to take advantage of these network upgrades when it is released this summer, making the new device twice as fast as current models. LTE technology, otherwise known as 4G, is in the works for future upgrades at AT&T but won't be widely available until 2011.

In a move to preserve the exclusive relationship with Apple and increase iPhone sales, AT&T may be considering changes to iPhone data plan pricing with the introduction of the next generation device. A typical two-year contract would see a price decrease of $10 per month, bringing the cost back to what original iPhone users signed up for in 2007.

Market research has shown that the high monthly cost associated with iPhone contracts may steer some users away from purchasing the device. The minimum cost over the required two-year contract amounts to over $1700 not including text messaging, taxes and fees.