The app is one of the more expensive in the App Store, and certainly at the high end of the navigation price range, at $100. That does not include the car kit, which adds a speaker, an audio output jack to integrate with your car stereo, and a microphone for using the phone while your TomTom is active.

I think the real dealbreaker with this app is going to be how it handles phone features. Unfortunately, the iPhone doesn’t allow multitasking, so your TomTom will close when you receive a phone call. That could suck really, really hard if it can’t reposition via GPS quickly enough. On the other hand, if it works well, it could be a pretty sweet deal for those of you in the market for some GPS help.

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They were, though, in a free app download today. Don’t let free fool you. The app will add a $10 charge to your AT&T bill.

The application was developed specifically for the iPhone 3GS but it will work with OS 3.0 on other iPhones. The app gives you turn-by-turn navigation, updates traffic information and will let you search by your location for the cheapest gas.

AT&T may have made a smart play here, giving them the early adopters. I’ll be interested to see whether other turn-by-turns run for a similar monthly fee.

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