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Re:AT&T Cracking Down on Free Tethering via Jailbroken iPhones by Dobbs on Friday March 18, 2011 @12:39AM (#2339355)
On the reddit thread there is speculation that they are observing the TTL of the packets. All iphones will send them out with the value of 'x'. When packets start leaving with 'x-1' then the person is obviously tethering.

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