Tethering is the process of using a mobile phone as a modem to connect to the internet (from a PC or an in-car infotainment system for example).
Although there has been a high user interest for this feature, AT&T in the US has blocked tethering on the iPhone so far.
However, now it seems that a new update to the iPhone Operating System will enable this feature, thus allowing users to connect their laptops to the iPhone to access the internet.
Source: Engadget.
