Earlier in the week we reported that Google had cut tethering applications from the application store. Tethering applications allow users to hook their G1 up to another device such as a laptop, and use the data connection provided by the G1 as a modem for the laptop, thus providing it with the Internet. This has a few implications, not least of which is due to the fact that T-Mobile also provide wireless Internet based on a monthly subscription for laptops in markets such as the UK and USA. Allowing G1 owners to use their G1′s ‘unlimited web browsing’ for their laptop as well would effectively destroy a sector of T-Mobile’s business.
This stirred up a whole load of controversy, primarily because many users could potentially be using a G1 on a network that allowed this functionality. Not everyone who owns a G1 is on T-Mobile. Plenty could have purchased a G1 and legally unlocked it for use on another network. Many users found that this was dramatically unfair since there is no reason T-Mobile should have any say over how users of the G1 are affected that are not on the T-Mobile network.
Since then, Google has just announced that it will not be performing a blanket sweep removal of all tethering applications. This is demonstrated by a note to WiFi Tether for Root Users developer, stating “We inadvertently unpublished your application for all mobile providers; if you like, we can restore your app so that all Android Market users outside the T-Mobile US network will have access to your application”. It is worth nothing that this statement implies that T-Mobile UK G1 owners may be able to get hold of tethering apps, but common sense suggests that it will be unlikely.
It is somewhat of a shaky start for Google, as this is the one of the first tests they have had to face in the Application store which effectively calls into question the true ‘open’ nature of the Android OS. They may have succeeded for now, but their foot certainly faltered along the way.
[via AndroidCommunity]

April 2nd, 2009
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This is stupid. This was a perk of the Wing and the MDA. I used it all the time ..it was one of the features. This is so stupid that they arent letting people do it with the g1. way to go tmobile.
My T-Mobile UK bill says Web’n'Walk Plus. Web’n'Walk is the unlimited data package and the Plus bit, I think, allows tethering although I may be wrong. So UK users may be able to use tethering apps within the Terms and Conditions. There is a 1Gb fair use policy which they can use to control overuse.
Good luck finding anything under a search for “tether.”
I had a look through T-Mobile UKs fair use agreement, and here is what it had to say for web’n'walk:
“Remember that you can only use web’n'walk in the UK and you can’t use your phone as a modem or use web’n'walk for peer to peer file sharing, instant messaging (except if you have a Sidekick) or making internet phone calls.”
However, there are two other types of Web’n'Walk, including Plus and Max. Plus does indeed allow you to use your phone as a modem, while Max allows you to use VOIP as well. Neither of these other two types seem to be covered in their fair usage agreement online….
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