You should check your facts before you tell someone something "matter of fact".
There is a app in the play store called FoxFi, you can use that to hotspot without any additional charge and without having to root your phone. In addition if you are on Verizon, the FCC ruled that Verizon cannot stop, prevent or do anything to customers to limit apps they can use to tether/hotspot for free.
Verizon's 4G LTE network is built on top of wireless bandwidth that Verizon bought from the government (specifically, the C Block of 700 MHz spectrum) a long time ago. That purchase came with a restriction called the Open Access Rule, which says anyone using it to provide service "shall not deny, limit, or restrict the ability of their customers to use the devices and applications of their choice on the licensee's C Block network." That means as long as you're a paying customer and using their equipment, Verizon can't keep you from spreading the wireless love to your iPad, your laptop, or any other device you own.