I’ve seen this on a lot of mobile device sites, including MacRumors, iPhone Freak and iPhone Alley (to name but a few); but it appears that the iPhone tethering application, NetShare, won’t be coming back to the US-based App Store…EVER.

According to information that I’ve read on these and other sites, the app was removed for one reason and one reason alone-it violates AT&T’s Terms of Service for both iPhone and iPhone 3G: No tethering allowed. AT&T is specifically prohibiting tethering on its network from these two devices. It’s not a matter of CAN’T. It’s a matter of thou shalt not.

My guess is this is a band width issue. I pushed well over 1GB of data through my iPhone 3G last month, and I really didn’t do THAT much. Yes, I surfed the internet a bit more with that device than I ever did with my WM devices (though I didn’t do YouTube or AOL Radio much with it).  However, I think that AT&T is affraid they will clog The Pipe if people start tethering their iPhones; and THAT’S why we won’t see NetShare back in the App Store.

Now, as far as those of us lucky enough to get NetShare before it got permanently pulled (yes, I was able to get a copy; no, I haven’t used it yet), use of the app is a bit on the grey side. I don’t think AT&T will be able to to tell what app you are using on their network without specifically sniffing for NetShare packets on specific accounts; and since they pulled it before it got too much air time, I’m not certain how many copies they actually sold, or how often it really is used. I’m also not certain what AT&T will do if they catch any user tethering their iPhone to their laptop.  From my understanding, it does violate your ToS and contract.

What do you think?  Were you able to get NetShare?  Have you used it? How does it work for you? Is it something that you plan to use a lot? why don’t you join us in the discussion and give us your thoughts?