One of the biggest complaints for iPhone and iPhone 3G users has been the lack of tethering capabilities on their devices.  Earlier this year NetShare was pulled from the App Store for offering tethering functionality  because it apparently violated the terms and conditions of the developer program. 

At&t Mobility CEO, De la Vega, made the comments during a conversation with TechCrunch’s Michael Arrington at the Web 2.0 Summit on Thursday. “Tethering” an iPhone to a laptop, and using the iPhone’s mobile data connection to get online, is a service that iPhone users have wanted for some time but that AT&T was reluctant to provide, perhaps because it feared that a huge influx of traffic could overwhelm its network.

The news from the Web 2.0 Summit coincides with earlier news from Gizmodo when Steve Jobs sent an email confirming Apple and At&t were working on a tethering plan.  Unfortunately NetShare never had much of a chance to win over the App Store, but NullRiver software, the company that sold NetShare still claims that their product did not violate any terms and conditions of the developer program.

In other At&t news from the Web 2.0 Summit, De la Vegas had some comments on the future of Android within carrier.  ”De la Vega said AT&T continues to look at Google’s Android operating system but is not prepared to make any moves to carry any Android phones. He said the platform is still evolving and needs to open up even more to offer a wider array of non-Google applications.”  At this point it is unclear when and if At&t will unit Android with its devices, but the heavy dependence on Google web apps is probably a major factor.

Via Cnet