Apple pulls iPhone broadband sharing tool from App Store

2:30pm ET August 1, 2008 -The NetShare application is back up on the iPhone App Store for its $9.99 price point. BetaNews was able to purchase the tool and sync it to the iPhone. NetShare works as advertised, although when the iPhone turns the display off, it also shuts off the Wi-Fi unless the device is plugged in.

For a few hours, iPhone users got the chance to download an application called NetShare that could turn the devices into a broadband modem for a laptop.

Developed by Nullriver, NetShare time on the App Store was brief, however. Apple quickly pulled the $9.99 application, likely due to the fact that tethering is considered against the terms of service of AT&T data agreements.

The carrier does provide a tethering option for smartphone users, but they are forced to pay an extra $30 per month for the option.

Essentially, NetShare works by creating a local Wi-Fi network between the iPhone and any device capable of wireless Internet. From there, you connect to the network and the iPhone's 3G or EDGE connection is shared.

Why or how NetShare made it through the manual review process is not known. It could be that wireless carriers in other countries are permitting such use, and its inclusion in the US store was a mistake.

Either way, Apple's not talking. Requests for comment have gone unanswered, and according to MacRumors, Nullriver's in the dark too.

"We're not quite sure why Apple took down the application yet, we've received no communication from Apple thus far," it told the site. "NetShare did not violate any of the Developer or AppStore agreements. We're hoping we'll get some feedback from Apple tomorrow."

Tests by BetaNews showed that the application had been completely removed from Apple's US App Store. Earlier reports indicated that NetShare had remained on the site, and attempts to download it were greeted with the message: "the item you tried to buy is no longer available."