Apple Thoughts: O2 Clamping Down on Tethering

"O2, the iPhone service provider in the UK, claims it will disconnect anyone using the new tethering feature in the iPhone 3.0 update without signing up for its bolt-on data package."

Users in the UK, and also in the US, have reported being able to use this feature already (The Apple Blog has a step by step article). But now O2 is going to put a crimp in the UK style by adding what they are calling a "Bolt-On" to the iPhone 3GS, which will cost will cost "up to £29.36 a month." O2 has threatened to disconnect anyone found not using the "Bolt-On" from the service.

I guess it is like anything, go outside the contract and you take your usability into your own hands.