It was no surprise last year when iTether was pulled from iTunes. It allowed users to turn their phones into a tether without signing up for their carrier’s tether service. Well, the app is back, but not on iTunes.

The Tether blog announced Friday that iTether is now available to all iPhone users through an ingenious loophole that leaves Apple without any recourse. They have built a web app that runs natively on HTML5 and allows iPhone users to take advantage of the Tether software through their iPhone’s Web browser.

“It was clear from our initial application iTether, there was enormous demand within the iPhone ecosystem,” says Tim Burke, CEO of Tether. “It was unfortunate that Apple decided to remove our application, only 20 hours after we launched. However, this caused us to innovate. Our underlying patent-pending technology behind Tether for iPhone is unlike anything on the market.”

The new iTether creates a wireless connection over AdHoc so its able to circumvent the walled garden that Apple has built. This also allows iTether to work all over the world no matter the carrier or network.

While the new iTether has successfully found its way around Apple’s certification process, it makes you wonder how long they have until Apple tries to do something about it.

In what may be an intended consequence of the app, according to the demo video, users who use Tether can access content on their PCs that they normally couldn’t before due to region blocks. The demonstrator is watching videos on Hulu through his phone when normally he could not due to his Canadian residency.

Here’s the demo of how the new iTether works.