Overview
Wi-Fi tethering has become all the rage in the ever thriving domain of smartphones. But some of us fuzzy minded do get confused about what exactly does Wi-Fi tethering mean. In simple terms, the process entails the ability to share a smartphone's Internet connection with other devices such as personal computers, laptops and even tablets. As a whole, it can be seen as an evolutionary progression of the original tethering procedure (which required a phone and cable). Now, in the present scenario, Wi-Fi Tethering allows users to (of course, in a wireless manner) share their mobile phone’s 3G internet connection (if available) with the external devices, over Wi-Fi. So, basically it turns your ever trusty handset into a full fledged mobile Wi-Fi hotspot.

Pricing and availability
Wi-Fi tethering is now compatible with a myriad of operating systems that include Android (2.1 to 2.3), iOS 5, Windows 7 (along with its Mango update), BlackBerry 7 OS and webOS. The pricing structure obviously differs with different carriers (like AT&T, Verizon, T-Mobile and Sprint), with plans ranging from $15 to $45.
What's great?
There are a plenty of features that are available with the convenient attribute of Wi-Fi tethering. But since, we are talking about web browsing; the first point should allude to user experience. In respect to that, the tethering process is very simple and quick. If we take the example of setting up a hotspot in iOS, you just have to turn on Personal Hotspot, and set a password. Then you can connect to this hotspot in the same manner as you connect to the Wi-Fi network. You can even secure the connection (like the Wi-Fi router) or make it public, as per your preference.
Coming to the second point, occasional testing has shown that Wi-Fi tethering actually offers a more faster, stable and optimized browsing experience than most of the other net related accessories such as Bluetooth, cable, or even USB Dongle/Modem. Now, according to some sources, this may have something to do with the high quality antennas integrated with the smartphones.
Finally, the whole wireless set up can achieve its finest speed and stability in areas where there are availability of high quality 3G network. And all of the tethering can be simultaneously done with multiple devices in a parallel connection.
And, since we are speaking of external devices, they can range from tablets to even iPods and WLAN cameras. The novelty of the process is exemplified by the fact that a normal iPod Touch (that only comes with Wi-Fi) can be converted into a 3G device, with your smartphone acting as the 'middle man'.
What's not so great?
Of course, all cannot be well, when it comes to mobile connectivity features. But the foremost predicament is related to the intrinsic attribute of the smartphone device. When in a multiple parallel connection, the tethering process can substantially drain your phone's battery life.
Even relating to interfaces, previously, we mentioned the list of operating systems that allow for Wi-Fi tethering. Among these, Android requires an altogether different app for the process, which in turn takes away some additional space of the phone memory.
Thirdly, and finally, we did mention something about turning your non-3G supported device into a contraption that would give 3G connectivity. But of course, the speed we gain will be less than the speed offered by the original 3G device (which is the smartphone).
Things to watch out for
Most of the Wi-fi hotspot plans offered by the carrier companies come with flat rate data bundles, thus making the overall cost a tad bit lower. With these plans in your phone, you will not be required to pay additional charges for the localized hotspots such as hotels, malls and airports. Moreover, as the user always carries his/her phone device, there is no need for the paraphernalia of additional accessories such as cables and USB Dongles.
Verdict
At the end of the day, Wi-Fi Tethering is a 'virtual' instrument for the increment of revenues generated by mobile data. So, for the companies, it becomes essential for the process to be more commercialized, which in turn can facilitate 'user friendly' lower subscription prices for high speed net (simultaneously, in a plethora of devices). And since your smartphone is the only main device required for this collective connectivity, we say Wi-Fi tethering is a winner feature.
Word around the web
MyTechBox says:
It is extremely simple as compared to alternative ways of establishing internet connection.AppAdvice says:
And, while the speed of the connection obviously cannot match that of an actual Wi-Fi network, Personal Hotspot is definitely the next best thing.