Secretly Nick Lee added a tethering feature to his Handy Light app, which looks like any other flashlight app that uses the iPhoneâ€™s screen to provide illumination, actually camouflages a tethering feature using the SOCKS proxy.
However, to access this free tethering you need to jump through some hoops.
Set up an ad hoc Wi-Fi network on your computer (network name and password requirement are not important).
Connect to the Wi-Fi network you just created on your iPhone through the Settings/Wi-Fi menu.
Tap on the blue arrow to the right of the selected Wi-Fi network, click Static in the IP Address menu and enter the following IP address and chuckle at its geek quotient: 22.214.171.124
Next, enter 255.255.255.0 in the Subnet Mask field.
Back out of the Settings menu to ensure these settings are saved (though hitting the Home button right away shouldnâ€™t change them).
Go to your Mac or PC and change the network settings to use the SOCKS Proxy and enter 126.96.36.199 as the Socks Proxy Server address and 1337 as the port. On our Mac laptop, this is what the resulting screen looks like:
Be sure to apply/save these settings.
Go back to your iPhone and open the Handy Light app and tap the flashlight colors at the bottom in the following sequence: blue, yellow, red. Then tap the top right corner of the screen and the color should change to purple. Your iPhone is now capable of sharing its internet connection with the computer you set up.
Leave the app open and go to your computer and start browsing. As the video describes, we found that it took a few seconds for the connection to kick in but then it worked like a charm. Though many variables affect network speed tests, a quick test using Speedtest.net yielded 3.92 MB/s up and 0.38 MB/s down while tethered to our iPhone 4 through Handy Light.
Now, I would suggest if you want free tethering you jump on the AppStore real quick before Apple pulls this 99 cent app.