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iPhone Internet Tethering Guide
What is Tethering?
A little something that overseas iPhone carriers that aren't AT&T have is a feature called Internet Tethering. I still don't understand why it is called "tethering" but it is really freaking cool and super simple to do. This is a hack to allow full, 3G speed, internet connection sharing on a 3.0 phone so you can use your iPhone data as your internet on-the-go wirelessly via Bluetooth or plugged into your computer. BenM has been hard at work making tethering configurations available for free. His streamlined process requires no computer or Jailbreak.

By sharing your internet connection with your computer you are breaking one of AT&T's rules which is to not use the data plan in devices that are not the phone. Also, the iPhone data plan is not "unlimited" like it says. This is false advertisement and AT&T caps the service around 1GB or under. Be warned, and play it safe. I can not be held responsible for anything you do to your own iPhone.
  • If you have not already done so, plug your iPhone into the computer and use iTunes to update your phone to version 3.0.
  • Visit BenM's iPhone Help Center using your iPhone (Tap opens a new page). Scroll down to where it says MobileConfigs and navigate to your carrier (Probably AT&T if you're in the USA.) After tapping on the appropriate carrier, a Profile screen will pop up. All you need to do here is press Install. This is all it takes to enable tethering.
  • Once tethering is enabled, you can go into Settings > Network > Internet Tethering and turn it on.
  • Now by simply plugging in your USB cable, your computer detects a new network interface (that's your iPhone) and starts using it!
  • For Bluetooth wireless Internet, turn on Bluetooth on your computer, pair your iPhone with your computer as a Mobile Phone, and at the end, miraculously, it works.

Some users have reported that their tethering only works the first time, and that the permanent solution to this is to reboot the iPhone and install again. I can vouch that the first run is a bit iffy, but once it's all set up it is rock solid. Bluetooth sometimes doesn't even work for me, but plugged in it has never given me any trouble.