Netshare, a great third-party application for iPhone and iPhone 3G, was up on Apple's AppStore, then taken down, then put back on, and now it appears it's been taken off indefinitely. Nullriver's $9.99 NetShare software enabled iPhone users to share their gadget's wireless Internet connection with a computer. Those lucky enough to snatch it reported it worked great.

However, it appears that the application conflicted with AT&T's iPhone Terms and Conditions, which allege that one cannot use the Data Service sessions by applications that tether the Internet connection to a computer "or other equipment for any purpose."

What now? Nullriver doesn't have the application available for download from its website, but resourceful iPhone users can find the application on the Internet and, with the help of a jailbreaking tool, they can run it on their iPhones.

Apple's move to kill the application is somewhat appalling. Most (read: all) mobile phones sold today can be used as modems for computers. With the exception of the iPhone it seems. Apple just gave people another reason to jailbreak their iPhones and free themselves from the tight grip of Apple and AT&T.

The developer, Nullriver, posted a message which underlines that they did not violate any of the Developer or AppStore agreements, and have gotten no word from Apple as to why their application was taken down. They hope that, at least, Apple will allow it to be used in countries where the provider does permit tethering. However, it appears that the application has disappeared from AppStores around the world, not just in the United States, where AT&T's iPhone Terms and Conditions seemingly prohibit it.