Originally Posted by Z_E_R_O
If you are rooted, the native hotspot just works, some people flash a "fix", some don't...but it uses your data. Use more than usual then they may look into it. No use for Wireless Tether or barnacles, it's just not necessary. It will work, you just have to be careful how much you use it.
Depends on the phone. The native hotspot on Android 2.2+ has been replaced by some OEMs/Carriers by an app. This app funnels the data in a different way. For example, when using an HTC-branded device on Verizon, data is funneled through two gateways; vzw3g and dun.vzw3g. Anything funneled through the dun gateway is reported as tethered, and rooting doesn't change this. You have to manually enter the EPST settings and change the tethered data gateway, or you can simply use another tethering app.
Also, going too high on data doesn't confirm to your carrier that you're tethering. Each carrier handles it differently. I used a peak of 7GB in one month on Verizon, but a friend of mine goes over 20GB every month, and Verizon hasn't said shit to him. He's still on the grandfathered $30 unlimited plan without tethering.
So, rooting alone doesn't simply open tethering. Some ways of free tethering don't even need root, while others do, but this is independent of root access.