Yes you can tether with a new smartphone and android but you need to check with the cell phone company. I have t-mo and they have no way of knowing that I use my wireles hot spot on my phone untill my data usage shoots way up and then they either slow my data speed or cut my internet on the phone.
I called in to find out what happend and they asked if I used the wifi hotspot. I said yes but why shut my off it si free isn't it? They said no I have to pay $15 extra a month to have it. What a bunch of BS. Cause it never says I have to pay for it when I launch the hotspot. They said they look for the data increase greatly. Thats how they know.
So I have been slowly using more and more data and connecting my computer for a little bit and more each time and they havent shut me off. If they do I will tell the it is a smart phone and I am getting more used to it and using it more and more everyday for everything. As long as I dont download some movies or watch them thru it I should be fine.
Watch out with verizon's data in then fine print they say up to 5gigabyte limit per month and it is like some 25cents per motorized bicycle over that. I used to work Cust Service for them and have seen $1000+ bills and more from going over the data limit but they dont cut you off just keep charging.
Work hard, Play harder and enjoy the Ride!!!!