The users of jail broken iPhones with the new MyWi application allows them to be used as 3G modems with Apple's new iPad tablet.

The application costs $10 and converts the iPhone into a Wi-Fi hotspot which is detectable by the iPad and can be used to gain access to the internet. This saves all iPad users from paying the outlay premium Apple charges for the upcoming 3G iPad hardware and allows them to use their existing unlimited data contracts from the iPhone instead of opening a new one.

On the other hand, the application is something that people may only use if they have broken the copy protection of their iPhones, an act which has been warned by Apple last month that could cause security problems, patchy service, and dropped calls.

Apple is continuously playing a game of cat and mouse with jail breakers and is implementing measures like prohibiting known crackers from its App Store, even though people claim that a person should be able to use it as they wish once they have purchased a device.

If MyWi and other applications that allow iPhones to be used for Wi-Fi launched, then AT&T and other operators may solicit Apple to update the operating system to block the applications, although it seems unlikely to be an enduring solution based on the speed with which other products have been cracked.