I would have said that I’d need a whole squadron of pigs, fuelled and ready for takeoff before this would happen, but it seems that Telstra have given us something for free. Yes, Internet Tethering with the iPhone and no additional monthly charges. How a carrier can get away with charging for this with a straight face is anyone’s guess, but it happens. Of all the telcos in Australia most likely to enable this service for free, I would have placed Telstra at the bottom of that list. It seems that my misgivings were unfounded as on Friday a carrier settings update was quietly released (go into iTunes and Check for Update on your iPhone) that enables tethering. Once you have the settings applied go into Settings -> General -> Network and you can enable Internet Tethering.

Telstra iPhones Get Free Internet Tethering! | MacTalk Australia.