Regardless of how many billions of dollars AT&T pours into their 3G network, it hasn’t been stable enough to handle all you iPhone users

They added that AT&T Blackberry tethering is a different beast, as Blackberry users haven't caused nearly the strain of iPhone users on AT&T's 3G network.

AT&T, on the other hand, routinely insists that they leave all service features up to the hardware manufacturers.

Given that AT&T has has taken plenty of bumps on the chin regarding iPhone data, and given that iPhones have sold even better this year than projected, it's not such a stretch to believe that AT&T might be playing it safe for the time being and handling their 3G network with care. [MacBlogz]

After AT&T's ToS came to light, they asked Apple for a refund, who directed them to Nullriver, NetShare's developer. Nullriver's Alex Lovett responded that it's actually in Apple's hands. Fearing the runaround, the blogger replied and pointed out Nullriver's 30-day return policy. Alex hit back with this:

"Ah, the support was set up in a rush and is still being worked on, normally for all our apps we do have a 30 day refund policy, but it is simply not possible to do that with the AppStore as its all operated and handled by Apple, otherwise we would offer it. If you speak to Apple they may grant you a refund/reversal on a one off chance, ive heard of them doing that."

Back to Apple, who again replied:

As previously stated, unfortunately there isn’t anything I can do for you. All iTunes purchases are final, and I am unable to refund you for the app.

You will need to contact NetShare directly, as this is there product and we can do nothing with it. You can contact them from the link below:

http://www.nullriver.com/support

Sincerely,
Andrew
iTunes Store Customer Support

The thing is, Apple can issue refunds: They did for at least two of the suckers who bought the $1000 idiot app. The situation might be a different from NetShare, however. The NYT says Apple "reversed" two of the sales, so it's unclear if the money was already in Armin Heinrich's pocket before Apple hit the brakes. NetShare has had people's money for well over a week.

Still, any way you look at this, it's not a pretty picture for hosed customers. If refunds are entirely in the hands of developers once the money is safely ensconced in their bank acccounts (as Apple support implies), well, you better buy from someone you trust—if the dev doesn't wanna give you your money back, you aren't getting it. Or, more charitably to Nullriver, perhaps there is just a big ol' hole between Apple and developers on getting refunds to users—then it's one that needs to be patched so users don't fall into it. The last possibility is that it depends solely on Apple's mercy. Would they offer refunds for a malicious app that they killed with the remote detonator? Right now, there's no way to tell.

The hardass take is that if Apple screws up and lets something in the App Store it shouldn't have, it should absorb the fallout and make amends to users (except for the "I Am Rich" morons, they suck). NetShare is an app users purchased with the reasonable belief they could use it because Apple allowed it into the store. (Twice even.) Part of being the store's One Supreme Guardian is bearing responsibility for everything that goes down under your watch. [Horrid Voices - Thanks JimiX!]

The obvious question is "Why doesn't AT&T just offer a tethering plan, so everyone's happy?" Trying to get a straight answer on this question is like interrogating a leprechaun about the current location of Elvis. Here's AT&T's official party line from an AT&T spokesman: "The iPhone is not intended to be used as a tethering device and we have no plans to offer separate tethering plans for it." Pushed on NetShare specifically, he added that

"Apple runs the app store, so you'll have to ask them about the availability of this and other apps. For customers looking for a smartphone with tethering capabilities, AT&T has a number of other options to choose from."

The implication—though AT&T won't come out and say it—is that the decision to not allow tethering is actually Apple's after all—besides, why wouldn't AT&T want to hit you for another $30 a month (or more if you go over their tethering plans' 5GB cap)?

We're still trying to get the very bottom of who's calling the shots on tethering being a no-no, but in the meantime, don't hold your breath for NetShare to show its pretty face back in the App Store. If you managed to snag it before it got yoinked, be careful, you don't want your account terminated. (P.S. if you're an international reader and NetShare is still available where you're at, let us know.) [Wired]

He says he found the URL (https://iphone-services.apple.com/clbl/unauthorizedApps) "tucked away in a configuration file deep inside CoreLocation" while doing a forensic examination of the iPhone 3G. It appears to be reserved for disabling actually malicious apps, not ones that Apple just doesn't like and might've yanked from the store. After all, no apps have shown up the list yet, and NetShare, the tethering app that is currently pulled from the store remains operational on all the phones we have it installed on, even after a sync.

But effectively invading one's phone is different than removing something from their virtual store shelves. If they ever use this exceptional—maybe egregious—power, Apple would have to explain why. The standard silence simply wouldn't cut it. [iPhone Atlas via MacRumors]

Update: Having problems setting it up on my iPhone 3G. I follow the instructions and the phone seems to "connect", but that's about it. No connections shown in the NetShare app, and nothing goes through.

Update 2: Now we're getting the message that it's not available in the US store. Sucks.