Personal Hotspot - Personal Hotspot is a featured added to the iOS with version 4.3 (March 2011) that allows iPhones to share their cellular data connections to provide Internet access to other devices nearby.
While iPhones can connect to the web via EDGE and 3G networks wherever there is service, the iPod touch and WiFi-only iPads can't. Personal Hotspot allows the iPhone to share its Internet connection with those devices via WiFi, USB, or Bluetooth. It does this by creating a small wireless network using the iPhone as its hub (in this case, the iPhone functions like a traditional wireless router, such as Apple's AirPort line of products). The iPhone then receives a data connection from the cellular network and broadcasts that connection to the devices attached to the network. Data sent to and from the connected devices routes through the iPhone.
For security purposes, all networks created via Personal Hotspot are password-protected by default.
Data used by the devices connected to the Personal Hotspot counts against the iPhone's monthly data usage limit.
Personal Hotspot Requirements
iPhone 4 running iOS 4.3 or higher (iPhone 3GS offers only Bluetooth and USB connections)
Data plan with tethering enabled
Phone/data service in your current location
Maximum Number of Simultaneous Connected Devices
Maximum Number of Simultaneous WiFi Connections
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