As to whether hacking your phone (note, it is "YOUR" phone) is any way nefarious, well, so far, Apple hasn't tried to test that in court
As for AT&T, I think a valid defense is that you
DO pay for data service with iPhone. Who is AT&T to tell one how you should use it? I can surf all day on iPhone Safari; why should it bother them if I do it through tethering? I'm paying for it!
One could make the argument that AT&T is actually illegally restricting someone who does this from using a service they pay for, thereby breaching their contract to provide service.
Yes, it's "your" phone, but not "your" cell network. You can do whatever to your phone, but that doesn't entitle you use it to steal services from others. No, you are NOT paying for data access *not used by the iPhone*. From the AT&T Terms of Service you agreed to with your contract:
"+General Requirements: AT&T provides wireless data services, including but not limited to, features that may be used with wireless data services and wireless content and applications ("Services"). The absolute capacity of the wireless data network is limited. Accordingly, *service is only provided for prescribed purposes and pricing for Data Services is device dependent and based on the transmit and receive capacity of each device. A pricing plan designated for one type of device may not be used with another device.+*"
http://www.wireless.att.com/cell-phone-service/legal/plan-terms.jsp#data
The "unlimited" rate plan fee for the iPhone applies only to what the iPhone itself can utilize as a smartphone, and as it was originally designed at the time the rate plan was set. Tethering to a computer by using the iPhone +as a modem+ increases data throughput capacity several fold, and you have to pay extra for that! EVERY CELL CARRIER charges at least $30 extra a month for tethering (including the Sprint "Everything" plan). This is contractual in the Terms of Service.
Be interesting to see how much AT&T charges for tethering. I for one, think they will lose some of their competitive advantage if they charge at all, and may be subject to a class action suit. I'm waiting for that, in fact. AT&T has VERY deep pockets....
Good luck arguing you're entitled to services explicitly excluded by your contract. Hope you and your lawyer have very deep pockets...
Message was edited by: modular747