I believe it remains to be seen how many pounds of flesh Verizon will try to extract from iPhone tethering customers.
At least with Verizon's current tethering charges (on Droid), you get an additional unlimited-but-really-5GB of data for your $30 charge. I imagine that iPhone will be the same.
This is what really irritates me. I have no problem with phone-carriers charging for services and making a profit. But this is so arbitrary! A packet is a packet is a packet!
I'm glad I switched to Android. Personal hotspot has saved me a couple of times in the last year.
In theory the network could use packet inspection to determine if the data was originating from a desktop OS instead of a smartphone OS, but in practice no one does this. The network doesn't see any difference between bits requested by your phone's browser and bits requested by your computer's browser using your phone's connection.
When I attended Google I/O last year we got given a free HTC EVO. Fantastic hardware, but the thing was so laden in Sprint crap I felt dirty just holding it.
It was like going back in time to the days where you got an ISP and they gave you a CD with a version of Netscape that included their own toolbar, and all their crappy bookmarks etc etc
Imagine if your electric company charged extra if you wanted to plug in a certain device to your home electric supply... Oh you want to plug in an xbox?? You'll have to purchase our special xbox electriciy plan for extra or we won't allow it to work.
They provide electric, we pay for what we use. The same should hold for data providers... We pay based on what we use. How we use it is none of their business.
On the other hand, you guys are talking about LTE, and we still don't have 3G, so what do I know?
Blame bandwidth delusions all around for that.
Carriers price on the assumption that while your caps are high, they really want your usage to be low. This is simply a response to customer delusions that the pipes are boundless and free (which is not true on landlines, and is enormously untrue in the wireless spectrum): See all of the salivation over the supposed unlimited plan Verizon might offer.
So my cell plan gives me 5GB. In an average month I seldom use 500MB (I'm always around wifi it seems), and that's exactly within their expectations. If I start tethering my phone, however, my average is going to go way up.
If carriers priced simply on throughput -- say $0.10 a MB or something -- they would be overjoyed to turn on and encourage all of the tethering you could ever want.
Verizon did make this service free on the Palm Pre, so it's possible it could be free for the iPhone 4 as well. But I think that was more because the Palm Pre was unpopular whereas the iPhone will be plenty popular.