iOS 4.3 Mobile Hotspot to Only Support 3 Wireless Connections
Although the Verizon iPhone's hotspot feature, which is similar to the hotspot feature on its other devices, including Android phones, that iPhone 4 is running iOS 4.2.5. It seems that the limitation on the hotspot feature in iOS 4.3 isn't to blame on AT&T. Apple's iOS 4.3 page clearly says the feature will only support 3 other devices in hotspot mode. It would appear we cannot blame the carrier whipping boy of choice, AT&T.
What does that mean? A mobile hotspot appears to a wi-fi capable device as just another wi-fi network. It's a lot easier than having to attach a device to say, your laptop via cable (which is known as tethering) and faster than Bluetooth tethering (using Bluetooth connectivity to connect a laptop to the 3G device). Anything past three users requires tethering by Bluetooth or cable.
Until now, AT&T hasn't even had mobile hotspot service on its iPhone. Even if it's only limited to three, this is still a major step. Based on the information on Apple's page, it would seem that Verizon users, once they "Catch Up," will see the same limitation. iOS 4.3, which will release on 3/11, will only support the GSM iPhone 4.