The iPhone Tethering Epiphany....
Thursday, June 18, 2009 at 8:51AM By now, most iPhone 3G users will have been able to download the new iPhone 3.0 OS upgrade. Contained within the upgrade is a feature to allow the iPhone to act as a Internet connection to your Mac, otherwise known as "Internet Tethering"
Apple have done a great job in implementing this feature, allowing you to use either Bluetooth or USB to connect your Mac to the iPhone and then use the iPhones internet connection to view your email, access Twitter, etc. It's all pretty seamless.
Plus, we're fortunate to have this switched on from day one over here in the UK, unlike our friends in the US who are having to wait for AT&T to get their act together.
However, there is a fly in the ointment - the cost!
Now the iPhone comes with an unlimited data plan included as part of the contract. This was a masterstroke by Apple when negotiating with deals with the carriers for the exclusivity of the iPhone as without unlimited data, the iPhone would not have taken off as well as it has. Sure, there have been other "internet enabled" phones before, but even if you could use the internet on the phone, it was an appalling user experience, plus you needed to be constantly aware of the charges you were building up.
The iPhone was the first phone with a credible user experience which actually made using the Internet on a mobile device easy. It's the first phone where you truly do have the Internet in your pocket, and the removal of the barrier of worrying about data charges just enhances that experience.
The problem with the iPhone 3.0 is that "Internet Tethering" is seen as an extra by most of the carriers (kudos for Rogers in Canada for not charging) and is currently being priced separately as a bolt on to the existing iPhone contracts
Over here in the UK, O2 are charging:
As pointed out in the comments, those prices are for Business users, it's even more expensive for normal users (Thanks Peter)
That's quite an expensive proposition if like me, I'd only really use tethering occasionally. Heck, I only use the thing as a phone occasionally and I'm already being charged £35 per month for minutes I don't use.
To wonder why they've done this (other than the knee jerk reaction of it being a money grab) you have to take the historical perspective. Back in the early days of "internet enabled" phones, people really didn't use the phone for internet access, it was just too painful. But hook up a computer and it worked. The metered data charges were still exorbitant, but we really didn't know any different and besides, it was pretty cutting edge!
Spring forward to today and we have 3G with pretty fast connection speeds and unlimited data on our phones at an all inclusive price.
So what about this epiphany?
Well, a couple of days ago I was in Starbucks with my laptop with the intention of doing an hours work. I fired up the browser to check out the options for wifi and was met with a demand for £4.95 for 90 minutes.
No way!
I took out my iPhone, checked a few messages, checked a few tweets and then carried on working on my laptop. After I'd finished (and after moaning about the cost via a Tweet) someone asked why I hadn't tried tethering. I'd never even thought to try!
After mulling this option over for a day or two, I realised that, even if I had been able to use tethering to access the internet via my iPhone, my usage would have been exactly the same. I would have accessed the same services via my tethered laptop, exactly as I'd done on my iPhone.
Exactly the same.
In fact, I'd even go so far as to say I would have used the exact same amount of data, regardless if I was using the iPhone on its own, or using the laptop tethered to the iPhone.
Yet, 02 want to charge me a minimum of £9.99 or up to £23.88 per month extra for the privilege.
But I thought on further.
It's possible that tethering could actually result in less data being used in some cases. Let's say:
Scenario 1: You're sitting in the coffee shop with your iPhone and your laptop with no tethering. So you pop out your iPhone and spend half an hour on line. No point getting out the laptop is there.
Scenario 2: You're sitting in the coffee shop with your iPhone and your laptop with tethering. So you pop out your laptop and spend 10 minutes online and then realise that you may as well get on with that proposal or presentation for a bit, seeing as you've got your laptop open.
OK, a bit simplified but it's possible! In fact, on my Starbucks visit, I spent more time online on the iPhone than I wanted to, had the laptop been tethered, I probably would not have.
The bottom line is with tethering, I wouldn't be using any additional data over and above what I would have used with the iPhone, in fact, I might even use less.
The old model of charging for tethering based on usage is just that, an old model, valid when data was metered. It makes no sense when used on the iPhone with an unlimited data plan.
So I guess my knee jerk reaction was correct - it's simply a money grab.
Reader Comments (12)
I agree with you totally there Don. I have a USB Modem Dongle from O2. Since I bought the iPhone a year ago, I haven't used this dongle at all, suffice to say I wont be renewing the dongle contract ! !
It's hard to believe, but Telefonica are not charging for tethering here in Spain although I think we already pay more than in other countries anyway...
I don't like the fact they are charging for it either, but I suppose the issue is some people would cancel their broadband accounts and use the iPhone for all internet activity.
I think I know how you did it and I will be doing the same. I use the N95 for internet access in the same way, and can connect multiple devices to it too. The only issue it the battery gets drained quickly.
The problem may come if too many people start doing it this way (hence I didn't tweet about it) they may take measures to prevent it.
Interesting re using less data. I can see why 02 are charging the way they are: simply they don't want to canibalise their 3g dongle sales. That would be my guess anyway. Still a money grab!
Admittedly I don't have an iPhone (gasp, horror). Simply because I don't have much use for a mobile/cell phone since I'm usually in my studio.
When I do have to go out (usually for a full day or two) with the MBP, I use a pay-as-you-go O2 usb mobile broadband dongle (£29.35 to purchase) then £2 for 24 hours access to mobile broadband with an allowance of 500MB via the cell network and unlimited wi-fi (via The Cloud). No contract, no monthly fees and seems to work a treat and (importantly) I don't pay anything for all the days I don't need it.
I know different carriers have different coverage around the UK but this seems pretty reliable and is excellent in cities. I was pleasantly surprised to be able to conduct a test Skype video call from a train, simply via the cell network. Not sure the other passengers would always be so very thrilled!
I hope I'm not missing anything crucial here but the point of tethering is to get internet access to your laptop away from base yes? Or does tethering to the iPhone add some additional features? Perhaps I do need one after all :)
http://shop.o2.co.uk/promo/o2mobilebroadband/tab/Pay_and_Go
Hi Peter!
Yes, it's just a gateway to the internet when you're out and about. No additional features.
Those prices are for business customers (like you Don) for us all, it's even more expensive :(
http://www.quicksnapper.com/files/84/7697296904A3A0D96AA439_m.png
I agree with @Peter. I've bought a pay as you go dongle and just pay the £2 on the rare occasions I use it. Then you've got also got your phone free to be able to make/receive calls.
Jim Sefton has nailed it, I would be one of those who would cancel my broadband if tethering was free. I am at the max distance from a exchange and only get just about a 120kb/s from my broadband connection.
O2 responds!
http://tech.uk.msn.com/news/article.aspx?cp-documentid=148051450
I agree Don - not sure why I need to be double billed for data. Already paying for a data plan on my phone. When I use it as a modem I can't surf safari on it AND my MBP at the same time, so to me it's really the same as using the iPhone data plan straight from the phone.
The icing on the cake for me though is AT&T being the flagship iPhone carrier in the US (and I would think would have the closest relationship with Apple) can't have these features (tethering and MMS) available at launch when they clearly offer these services for other smartphones already.
Rogers in Canada will only be offering tethering "free" until the end of December. The company also has minimum data plan requirements. So it isn't quite as good a deal on close inspection. That being said, Canada does have MMS and tethering!