While there are rumors that the upcoming iOS 4.3 update will add Wi-Fi hotspot functionality to the iPhone, the iPhone is not the smartphone AT&T is introducing the Mobile Hotspot app. According to a , "The feature will first be available February 13, beginning with the in-store launch of the HTC Inspire 4G. Bundled with the AT&T Data Pro plan, customers will benefit from a total of 4GB for $45 per month."

The new Mobile Hotspot feature combines 2GB of data usage for $20 per month, with the 2GB AT&T Data Pro plan for $25 per month for a total of 4GB of data to be shared collectively across all connected devices. An overage fee of $10 per GB will be incurred if users exceed the allotted bandwidth.

Asked about the expected hotspot capabilities of iOS 4.3 and how that fits with the new Mobile Hotspot app, an AT&T spokesperson responded simply, "We are working with Apple to bring it to iPhone."

To keep things fair and add value for its other data-sharing customers, AT&T is also tacking the same 2GB of data consumption onto the existing tethering plan. Currently, AT&T charges $20 per month for the privilege of tethering, but doesn't provide any additional data capacity. As of February 13, users will have 2GB of data on their smartphone, and an additional 2GB for the data tethering.

The moves show that AT&T is willing to compete more aggressively, and might even help ease some frustration by users who feel that AT&T is . However, AT&T's wireless rivals still make a compelling case with their data plans as well.