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AT&T exec confirms iPhone tethering on the way

How's this for a telephone game: Technologizer's Harry McCracken reports that AT&T Mobility CEO Ralph De La Vega told Michael Arrington that the iPhone will be allowed to work as a tethered wireless modem for notebooks. It will be available "soon." Allegedly.

Our own Mike Schramm noted possible correspondence from Steve Jobs himself in late August suggesting that talks were already underway with AT&T.

We all know it's technically doable. Both NetShare and iModem take care of tethering quite nicely. The sticky wicket is getting AT&T's permission: the strain could be too much for the telco's 3G network to bear.

At this point, we don't know if AT&T's plans to allow tethering include any rate increases or bandwidth caps. Got any theories? Let us know by leaving a comment.