Among the most exciting features of this month's iOS 4.3 software update was the addition of the personal hotspot feature. This allows users to tether their devices to the 3G connection of their iPhone. Many users are reporting however, that when an iPad running iOS 4.3 is tethered to an iPhone, the iPhone also transmits its GPS coordinates. This allows iPod Touches, and Wi-Fi only iPad models (which do not have GPS built-in) to function almost identically to the 3G-equipped model.
Using an iPhone as a personal hotspot, although a new feature for GSM phones, was introduced in iOS 4.2.6 (the current software for the CDMA iPhone 4) jailbroken iDevices have been able to tether for a quite a while using popular tethering apps such as MyWi. Although GPS tethering is a welcomed new additional feature, so that users' Wi-Fi iPads or iPod Touches can have nearly identical internet and geographical capabilities of the iPhone or 3G iPad.
It should be noted that in order for GPS tethering to work, the iPhone must be running iOS 4.3, as must the iPad or iPod touch. That means GPS tethering will not work with older iDevices, or devices that have not updated to the latest software.
We have also confirmed with Intelliborn, the makers of MyWi, that GPS tethering also works via their software, so long as the devices in use are all on iOS 4.3. There is a small downside, the GPS coordinates do have some lag time, around sixty seconds under normal conditions. Regardless, this seems like an great new feature that enhances an already exciting software addition in iOS 4.3