PdaNet, the popular (and free) tethering app in Cydia, has been updated to mask unauthorized data tethering. This comes after carriers like AT&T have started cracking down on iPhone owners who use MyWi to tether without losing their unlimited data plan.

AT&T has been flagging any packets that appeared to come from a secondary device before sending out a notice to users. PdaNet prevents this by using a method of masking packets sent through the network so your carrier can't tell if the data is coming from a device other than your iPhone.

The app also includes features like USB tethering and basic Wi-Fi security in addition to controlling the broadcast channel and WiFi signal strength, just like MyWi. You can either use the free version, or upgrade to the full version for $15.95 (limited time deal, normally $29) to access secured websites.

Any readers out there using PdaNet? What do you think of it?