I had wondered what was going on with tethering and MMS for the iPhone.  I kept hearing rumors that it was due for the fall.  But it looks like there are still significant network issues with AT&T.  I’ve certainly experienced some of the issues mentioned here.

While AT&T and Apple have remained silent on the absence of tethering and MMS with the iPhone, a new report provides insight on the effect an influx of bandwidth-heavy mobile users have had on the wireless network.

Digging into customer dissatisfaction with the AT&T network, The New York Times revealed that the carrier has struggled to keep up with demand as iPhone owners use more and more bandwidth. The report suggests that AT&T’s reputation could be tarnished because, for some users, its network is unable to keep up with demand. The bandwidth issues have led to delays of tethering and multimedia messaging, much-anticipated features for iPhone users.
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“The result is dropped calls, spotty service, delayed text and voice messages and glacial download speeds as AT&T’s cellular network strains to meet the demand,” the report, which compared the device to a gas-guzzling Hummer, states. “Another result is outraged customers.”

via AppleInsider | Bandwidth-guzzling iPhone called “Hummer of cellphones”.