Well,
It has come to that – Apple let slip iTether – another tethering app, into their store and the world exploded 
. iTether allows tethering off of your iPhone data plan via a USB cable, which is what a lot of people need. It does this without complicated proxy servers like HandyLight, another tethering app that concealed a key combo that enabled tethering. For those lucky enough to snag iTether from the iTunes App store for $14.99 – congratulations. For the ones that failed to do so in the 12 or so hours the app was live before it got pulled – sorry. Look for a friend who got it and ask them if they can provide (temporarily) their iTunes username and password so that you can get it as well. Once you have iTether on your phone you will need to download Tether-iPhone.dmg (attached zipped here) and Tether-iPhone.exe (attached zipped here) as the server load is huge.
Enjoy iTether, as I am, the $14.99 are nothing for me as it allows a very convenient way to access the Internet when I’m in a pinch. Before iTether I would have to set up a network off of my MBP, connect the iPhone to it, change MBP to static IP, enable proxy on it, fire up the HandyLight app, enter the key combo and finally be able to surf the Internet waves. One word of advice for all:
Once you set up the connection (on my Mac it shows a Bluetooth PAN) change your DNS servers from the default ones to Google’s DNS (8.8.8.8 and 8.8.4.4). You don’t want your queries served by anything other than Google.
Enjoy iTether once again.
P.S. Oh, and yes, I’m using it right now
{ 2 comments… read them below or add one }
I don’t know if it matters what version of osx you’re running. I’m on 10.5 and get instant crash when I start the program. I didn’t set up the dns like you said yet, but I would think that wouldn’t cause the app to crash.
It shouldn’t, there were no OS X version requirements on the website. Probably coding bug, I’m sure those will be ironed out by the developer. It’s the local app so time will tell how they will handle the deluge. Try rebooting, then turning off your WiFi and then installing it. If it does not work, try this, create a new user on the Mac and try installing it on that user, if it works, then it’s some app that interacts with it on your original user’s profile. Check your updates as well, keep your computer updated in general. Best of luck.