A lot of the cell phone carriers are selling MiFi devices which are often labeled as “personal hotspots”. These small devices act as a portable Wireless Router which you can carry in your pocket and make Internet connections with your laptop, iPad, etc. via WiFi. Usually they are priced at $100-$200 US and then have a $60-$100 monthly charge for data usage. These MiFi devices are a great choice if you need to connect multiple devices to the Internet while on the go (I can see a traveling business person using one of these for his or her smartphone, laptop, iPod Touch, and iPad).
Some of the newer smartphones have the ability to act as personal hotspots, with some charging a small fee and others not charging anything. From what I’ve read, the Android phones provide this service free of charge but the iPhone requires an additional monthly charge (depends on the carrier, but usually runs $20-$30 per month).
If you’ve jailbroken your iPhone, you can use a small utility called MyWi which allows you to connect your WiFi devices to your iPhone (wirelessly) as if it was a personal hotspot. Using this method, you shouldn’t be charged the extra monthly fee as described above (but, you will be charged data usage according to your current plan).
As a test, I decided to download the trial version of MyWi from the Cydia App Store (available for jailbroken iPhones) and see how well it worked. After downloading and installing this simple app, I was able to configure it and use it within just a few minutes. First, I fired up my Windows 7 laptop and checked for WiFi Routers in my area, and sure enough my iPhone appeared in the list. I connected to it and did the speedtest.net speed test to see how fast the connection was (via my Verizon cellular connection). On average, my laptop saw 3.60 mbps download speed and 3.60 mbps upload speed (not too bad!). I then tested my iPod Touch connected to my iPhone via WiFi and got similar speed results. So, it seemed that the MyFi app is a good solution if you want to convert your iPhone into a personal hotspot without paying the extra monthly cost. Of course, you can only use this method if you jailbreak your phone and your average iPhone user may not want to go that route.
Note, that MyWi isn’t free (it current costs $19.95 via the Cydia App Store), but for a small one-time charge you’ll get a personal hotspot without any extra monthly recurring charges.