How to tether your iPhone

When Apple unveils the iPad 3 next month, it will (probably) offer two options for connectivity: one model that is Wi-Fi-only, and another that utilizes 3G/4G data networks. But if you already own an iPhone with an expensive monthly data plan, it isn’t going to be in your best interest to buy data for a second mobile device.

That’s where tethering comes in. it lets you share your iPhone’s data plan with one or more other devices, including desktop PCs, laptops, gaming consoles, and, yes, an iPad. Most wireless carriers have done away with unlimited data plans, so you probably won’t be able to go crazy with it. But, as most of us have home DSL or cable internet service anyway, tethering should suffice for most people.

There are several approaches to tethering; we’ll cover all of your options here.

Authorized (paid) tethering

This is the only way that your carrier wants you to know about. they want you to buy a separate tethering plan. Most customers blindly accept this (they’re so accustomed to paying for plans that they don’t even question it), but there’s one big problem here: you’re essentially paying twice for the same data.

Sprint — who still offers unlimited data — could argue that there is a practical reason to charge for tethering (it keeps users from going overboard with unlimited data), but AT&T and Verizon have no such excuse. If you have a capped plan, what difference does it make how you’re using that data? It’s a scheme to make more money, and nothing more.

If you aren’t interested in jailbreaking — or if you like to play by the rules — then this is the route you’ll want to go with. If you login to your wireless account, all wireless carriers will give you the option of adding a tethering plan.

AT&T requires you to sign up for its biggest data plan, which includes “free” tethering. for $50 per month, it gives you 5GB of total iPhone data, which you are free to tether (or not) as you wish.

On Verizon, you’ll need to sign up for a $20/month hotspot plan. it gives you 2GB per month of tethering data. Unlike AT&T’s method, Verizon’s hotspot data is separate from your iPhone’s data plan.

Sprint requires a $30/month hotspot plan, which allows for 5GB of tethering data. the non-tethering data that you use on Sprint is still unlimited.

Once signed up for a tethering plan, you’ll still need to access tethering on your handset. to do this, open the Settings app, and navigate to General>Network>Personal Hotspot. after you turn it on for the first time, it will have a new entry near the top of your Settings menu.

Though Wi-Fi hotspot is the most common method, you can also tether your iPhone’s data via Bluetooth or USB. Bluetooth will give you the best battery life, but isn’t quite as fast as Wi-Fi. USB tethering should give you the best speeds, but you can only use it with a PC (obviously you can’t USB tether to an iPad) and you have to always have a cable. Wi-Fi may give you the best balance.

Once you activate tethering and choose the connection method, simply look for the network on the other device. iPads will easily connect to a Bluetooth or Wi-Fi-tethered iPhone.

Unathorized (free) tethering

For those who don’t mind bending (unfair) rules, the jailbreak community has you covered. after a one-time fee for a quality tethering app, you’ll be able to use your standard data plan any way you please — including tethering without additional fees.

The first step is to jailbreak your iPhone. We’re at a point in time when every iPhone can be jailbroken, so follow the instructions in the corresponding tutorial below:

How to jailbreak the iPhone 4S

How to jailbreak older iPhones on iOS 5.0.1

After jailbreaking, you’ll want to find a tethering app in Cydia. you can refer to our in-depth look below:

The best iPhone tethering apps (and one to avoid)

If you choose TetherMe, then the method of activating a hotspot is identical to the above instructions for authorized tethering. If you choose PdaNet, then you’ll simply open the PdaNet app, make sure “hide tethering” is checked, and activate it. You’re free to use MyWi, which is a phenomenal app, but I don’t recommend it due to its lack of hiding tethering from carriers.

It’s worth noting that there’s nothing illegal about unauthorized tethering, it just isn’t approved by your carrier. it violates your terms of service, but the worst that could happen would probably be their forcing you to sign up for a tethering plan. If you stick with TetherMe or PdaNet, you’ll probably be in the clear, but nothing can 100% guarantee that.