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Your last line got me thinking: aka Rabid speculation time.

What if the Apple 'Media Tablet' that is supposed to launch with Verizon service had this same feature? It's got an internal 3G connection but it can also broadcast a Wifi hotspot with Bonjour!

That would be an amazing gadget.

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It's not so much a matter of capability as it is a matter of carrier restrictions. The carrier restrictions keep an app that does this for the T-Mobile G1 from being easily distributed (and I think it requires rooting your phone, last I checked). So the amazing gadget already exists, it's the contractual agreements that need to be made amazing.

...it's the contractual agreements that need to be made amazing.

I hope Google still has secret plans for entering the wireless space, or buying a company in the space.

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