What are "Personal Hotspots" on the Verizon iPhone?

Yep, you've got it - the Hotspot feature mentioned by Verizon during their announcement of the iPhone on their networks is pretty much a MiFi / wireless router. It will allow you to set up a wireless network - You give it a name and password, then other devices with that information plugged in can connect by plugging that information into their wifi wettings. The feature will allow up to 5 devices to share the wireless data connection of your iPhone... that means your laptop or iPad / tablet would be downloading at 3G speeds... likely not as fast as your home wifi if you're connected to DSL or cable.

Verizon's presentation made it sound like this would be a special app bundled with Verizon iPhones only, but the rummors are that it will be part of iOS 4.3 and can be turned on / off via the iPhone's settings app... similar to tethering. And similar to tethering, this feature, while part of the iOS, must be allowed by your wireless carrier - i.e. Verizon.AT&T will have the option of turning it on as well.

Verizon has phones which allow you to set up hotspots already. With those phones, they typically charge $20 a month on top of the existing $30 per month data fee. That $20 will buy you 2GB of data to be used by other devices.

They haven't announced if this plan will carry over to the iphone or if it will have a special plan unto itself.

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