Report: Apple, AT&T to Announce iPhone as Internet Modem

Rumors about Apple are already heating up the blogosphere. With MacWorld set to kick off tomorrow, there's reports of changes to Apple's PC and notebook lineup, and even rumors of a possible iPhone nano.

Lost amid the noise is a rumor concerning Apple and its partner AT&T, which may seem smaller, but could be a big deal eventually for some iPhone customers. TUAW, an Apple blog, is reporting that a trusted source at Apple has confirmed long rumored plans that Apple and AT&T will be announcing a tethering service for the iPhone in the next couple weeks.

With the new service, AT&T would supplement its existing wireless broadband modem offerings, and attempt to gain and upper hand on wireless aircard providers Verizon Wireless and Sprint.

The new service is reported to be offered for an extra $30/month fee, which will include 5 GB of data. As with other aircards, going over the data cap will likely incur large overages. To use the service you would simply connect the iPhone to your computer.

The plan, if it is indeed announced, would offer consumers perhaps the most inexpensive source of wireless mobile internet yet. Competitive mobile data plans employing EV-DO or HSDPA cards from Sprint, Verizon, and AT&T typically run around $60. Some users with unlocked iPhones have already employed a hack to use the phones as tethers, but the new plan would provide AT&T customers with a legitimate means to do so.

Another hot rumor circulating around the Apple blogosphere is reports that Apple may release a "MegaiPod" sometime in 2009 -- a giant-sized iPod touch. The new iPod would have a form factor between that of a tablet PC and the current iPod Touch. The blog site TUAW says that its source substantiated these rumors, but did not say when the big iPod might be arriving.


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