Tethering is the practice of using a mobile device (such as a

smartphone) as a modem to connect another device, such as a laptop or

another mobile phone to the Internet. To do so, the phone must have mobile
data enabled. 

Tethering is one method of creating a mobile hotspot (an ad

hoc wireless access point). The practice is increasingly common for travellers, out-
of-office employees and those who want access to an alternative to the corporate network
from within the workplace. (See: BYON -- bring your own network.) Tethering may or
may not provide affordable connectivity, depending on the user's data plan and contract.

A tether is a long leash. In phone tethering, the leash is either a USB cable or a wireless
Bluetooth connection.