Tethering may still be an unofficial no-no on the iPhone but US telecom company Sprint seem determined to encourage it on their own handsets.

Sprint are understood to be considering dropping the price of Phone As Modem (PAM) add-ons on new plans to US$15, down from the previous US$40 per month paid by current plan holders.

Tethering enables customers to use their cellphones as wireless modems “tethered” to their laptops.

Earlier this month, Nullriver’s Netshare application that turns an iPhone into a portable WiFi hotspot was pulled from Apple’s App Store shortly after being made available.

Tethering is one of the most requested apps for the iPhone and is only available for jailbroken iPhone handsets – and in a more complicated form.

Sprint’s price drop appears to be part of an effort to lure customers over from older plans.

It will only take effect on current offerings – Sprint’s Simply Everything, Sprint Everything, and Everything Plus plans.

While Sprint’s plans of today typically cost more the discounted PAM can make up for the difference.

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