Yes, VM blocks out the Wireless Hotspot/Tethering feature...IN THE SETTINGS ONLY. So this means if you download Quick Settings app or something else involving tethering, you can still use it and take advantage of your unlimited Internet. This means no annoying siblings taking your phone away to watch videos on YouTube they probably shouldn't be watching, instead they use their outdated 2nd gen iPod Touch and connect to your hotspot! (I'm getting this phone soon, I'm looking forward to doing this with my sister. We have a power inverter so my battery life isn't a problem.) Yes, many people know this already, I learned this somewhere else (forget where), but it's still handy to know. Cheapo unlimited 3G plus free tethering is AWESOME! EDIT: Note this is against the Terms of Service, and if too many people abuse it they may disable unlimited data or completely strip the feature from the phone, among other reasons (see other posts for details). So please, PLEASE, PLLLEEEEEAAAAASSSSEEEEE do not abuse this.