While I trashed Vodafone NZ's pricing in a previous post, in at least one way it's far ahead of U.S. telco giant AT&T: internet tethering using the iPhone is already possible over Vodafone's network without resorting to lengthy, kludgy, and unsupported hacks. Who knows how long tethering will stay supported here, or how long it will take before Vodafone remembers to charge extra for it, but for now, tethering is go in the Southern Hemisphere.

Tethering works over both USB and Bluetooth. Using USB to tether simply requires enabling internet tethering in the iPhone's settings, then plugging the iPhone into an available USB port on your computer. The Mac will automatically recognize the tethered iPhone, and your connection will be up and running.

Bluetooth tethering obviously requires enabling Bluetooth on both your iPhone and computer, and then selecting "Connect to Network" from the Bluetooth drop-down menu. Once again, the rest of the setup is automatic -- it really doesn't get much simpler than this.

The speed of the internet connection appears to be comparable to the iPhone's standard mobile speed using USB, but Bluetooth was only about half as fast. I didn't remain tethered for long for fear of gulping down my meager monthly data cap, but for the time I used it, tethering worked with no issues whatsoever.

For my money, having tethering available in little ol' New Zealand long before the U.S. will have it puts AT&T in an even less flattering light -- while AT&T has far more users spread over a much larger area than Vodafone NZ, AT&T also has more towers and more money to pour into their infrastructure.

Any other international iPhone users managed to get tethering working on their networks? Sound off in the comments, and be sure to let us know what network you're on.

Read on for a pictorial guide to enabling tethering over Bluetooth.

It's official: The iPhone 3.0 firmware is now available. As you wait for your copy to download and install, you'll need something to read -- and we've got a complete walkthrough of the new software. Join us as we take you through most of the new features and how to use them.

Push Notifications
This has been one of the most requested features for quite a while, and in iPhone 3.0, it's finally a reality. Push notifications allow iPhone applications to provide a faux backgrounding service. In our testing, Apple's notification service works so well that you would almost think the application was running in the background.

When you download and install an application that features notifications, you get a new Settings menu called "Notifications." In this panel, you will be able to select, per application, how you would like to receive notifications. You can choose any variety of sounds, alerts or badges. Sounds will be a predefined sound from the application that will sound only if you have the ringer on; alerts will give you a pop-up alert that will either appear on the lock screen or in any application you might be in at the time; badges will give you a counter on the application icon on the home screen.



Spotlight Searching
Quite a few people (including myself) have wanted an app launcher on the iPhone. While Spotlight Searching doesn't make up for the lack of an actual app launching application, it does provide some solace to the app loving iPhone users out there. Spotlight resides on the home screen, taking up one of the screens. When you are on the first home screen, sliding to the right will display the searching interface.

While simple, the interface allows you to type in a name, phrase, or other search terms and have the whole phone searched. Enter a contact, it will display the contact name. Enter a song, it will show the song and allow you to go to the iPod application. Enter a calendar event, and with one click you can view that calendar and the event schedule.

There are some shortcuts and settings that go along with Spotlight. If you want quick and easy access to the Spotlight feature, you can have it automatically launch by double clicking the home button (you can change this setting in Settings > General > Home). Just as you have the ability to order search results in Spotlight on your Mac, Spotlight on your iPhone allows you to do the same type of order. Just navigate to Settings > General > Home > Search Results. From this screen, you can enable/disable certain search results and control the order in which the search results are shown.




Read on to learn more about the iPhone 3.0 software update, and to see more of the new features.

Some of our readers have informed us that Tap Tap Revenge (iTunes store link) has been updated to version 2.6, boasting compatiblity with iPhone OS 3.0. This is most likely merely the first of many apps that will see updates in the coming weeks, but it's interesting that Tapulous has unleashed this update so far in advance of OS 3.0's release.

If you are running OS 3.0, upon launching the new version of Tap Tap it will ask you for permission to send push notifications to your device. If you allow them, a new category called Notifications will appear in your device's main settings, which will allow you to toggle push notifications on or off. Additionally, it appears that each app will have individual settings for badges and alerts.


It's not likely that Tapulous will be sending any push notifications just yet, as Apple has yet to throw the novelty-sized Frankenstein knife switch to activate push services. It's also unclear at this point what type of push services Tap Tap Revenge may offer after that switch is thrown. It is an interesting preview of things to come, however.

With all the news floating around today about the new iPhone 3G S, and the updates on the release dates of iPhone 3.0 or Snow Leopard, you might feel deprived if you didn't get to make it out to this year's WWDC. Don't fret. You can now watch the keynote stream on the Apple website and see all of the announcements from the event. Click here to go to the stream page.

You can view all of our coverage from this week on the TUAW WWDC page.

Update: You should soon be able to download the keynote as a podcast from iTunes via the Apple Keynotes feed, which can be found here [click opens iTunes].