Here is a new iOS 5 feature that hasn’t been documented yet, most likely because it’s probably a bug that will be taken care of in the next beta release. If you own a Verizon iPhone (aka CDMA version of the iPhone) and you go to Settings > General > Network > Internet Tethering, and turn the toggle ON, you will be able to tether your device for free, turning it into a Wi-Fi hotspot at no charge.

I don’t have a Verizon iPhone so I couldn’t verify this myself but I asked several people on Twitter and they were all able to turn tethering ON, without having to pay anything to Verizon…

iDB reader, Joel, who was the first to tip us on that, explains:

“In iOS 5, as you know, tethering is now an option. On the Verizon wireless build of iOS 5 when you enable tethering you are not charged nor do you have to have a tethering plan. It just works I am using it tethered via bluetooth to my MacBook right now.”

Verizon normally charges $20/month for 2GB of data for its iPhone tethering plans. It appears that a bug in iOS 5 Beta 1 is going around this and allows native tethering for free.

Enjoy while it lasts!

[Thanks everyone for the help]

  • Stefan

    Probably only for Testing. Perhaps it also works on GSM Phones for Testing?

    • Mikey

      It worked for me

  • alex s

    the hotspot is on the AT&T version too

  • G Funk

    I wonder if AT&T will still send those text messages out.

  • mike

    It is not only in IOS 5 im running 4.2.8 (JB) and since yesterday i noticed the Personal Hotspot is available i thought at first it was an app that i installed (Springtomize… i know it has nothing to do with it BUT) but as i see here it is probably a setting Verizon pushed out.

  • Mrsergioramos

    I’m using iPhone 4 with AT&T and the hotspot setup is there Setting-General-Network-Set Up Personal Hotspot.I don’t have tether on my plan so it tells me to call or go to website to set it up. Free for Verizon customers but lets charge AT&T customers?? I don’t think so, this is just a beta things will change when it’s for public.

  • I bet they will just add tethering onto your bill if you use it too much

  • Jebus

    If you want a FREE 15 DOLLAR iTUNES GIFT CARD follow these directions:
    1) install the shopkick app from the app store.
    2) after clicking “let’s do it” (haha) click cancel at the top left of your screen.
    3) go to the “me tab at the bottom left of your ipod/iphone/ipad.
    4) click the “got a promo code?” box and on the next screen type in mink8492
    this works on all ipods/iphones/ipads jailbroken or not.

  • Godofredo

    shopkick doesn’t seem to give you the free itunes gift card anymore, just 50 kicks

    • J.J

      Use this promo code yellow9396

    • J.J

      Use this promo code yellow9396 in the app were it says “got a promo code”

  • Alybatts

    Yeah it’s not free anymore. It’s $20. Ever since July 7th since Verizon did away with the unlimited data.

  • Dee

    It’s not just your network mrsergio. I’m on Verizon and getting the same option to call as you are. Makes me wonder if it’s a regional beta test? Wish I could get it free right now. My Internet just went down on my laptop ;(

  • I’m trying to “Set Up Personal Hotspot” on my iphone 4 with iOS5.0.1. Verizon. No dice. Need to pay $20/month. Don’t know anything about jailbreaking my phone yet. Any ideas on accomplishing tethering for free?

  • Anonymous

    I have no “internet tethering” option to turn on. Anyone have any ideas? I phone 4S

  • dylanm312

    This is not a bug. This is included in the Verizon 4GB data plan.