UPDATE: Warning: a lot of apps in the Google Playstore say that their app works for tethering WITHOUT a VPN, this is completely false information. You STILL require the use of a VPN to tether your phone to your computer because it encrypts the information; something the app does not do. It may look like it is working but T-mobile or any other phone company be it AT&T, Sprint, Verizon etc will block you and that is something you do not want. Just follow the guide below and you will be able to tether 24/7 without being blocked.
Unfortunately T-mobile & a bunch of other cellphone companies which have unlimited 4G service have stopped offering a mobile hotspot option for free and now you have to pay a ridiculous amount of money ONTOP of paying for your unlimited 4G service so you can tether your laptop, PC, tablet or any other device to it and you cannot even get an unlimited tethering option.
I moved out to an area with absolute crap DSL speeds, cable is not available where I live but my cellphone on the T-mobile network has unlimited 4G which is about 4 times faster than my DSL connection and so to watch any sort of streaming video even in standard definition over DSL is unbearably slow and streaming HD videos is next to impossible but not anymore with this nifty little tethering work around.
I can now stream Hulu, netflix, youtube, all my music, download torrent etc tethering my phone to my PC and have not received any messages from T-mobile telling me my tethering has been blocked and that I can re-enable it by upgrading my account by paying them for tethering.
This is the text message you will get if you try to tether your t-mobile phone after about 15 mins (sometimes sooner)
Free T-mobile Msg: Smartphone mobile hotspot [tethering] access has been blocked. Please add Smartphone Mobile HotSpot service available. Http://offers.t-mobile.com/tethering/upsell.do?source=100SMS
All your webpages will now cease to load and you will be presented with the following message:
This is the only method I have found to tether my t-mobile unlimted 4G plan; I have tried a bunch of other methods and all fail within 15-30mins but using this method I have been online for days and have downloaded gigabytes of bandwith with no message saying I have been blocked.
You can either do this with a rooted android phone or an unrooted android phone; rooted you can use wifi tethering (or USB, bluetooth) without having to use a 3rd party tethering app if you have a custom ROM and unrooted will have to use a 3rd party tethering app like FoxFi for wifi tethering but I use ClockworkMOD tether.
The reason I like ClockworkMOD tether is because 1. it works every time without fail, 2. ClockworkMOD tether costs $5 to purchase in the app store, Foxfi costs $8 3. Foxfi only works part of the time and can leave your connection vulnerable.
4. One of the biggest reasons is that ClockworkMOD works over USB and not wifi which charges my phone while I am tethered instead of HEAVILY draining the battery which happens on Foxfi (just something to think about
You will need to get a VPN, I use HideMyAss and have found the speeds to be excellent and the price to be extremely good; besides I know for a fact that Hidemyass works for tethering.
Click here (opens a new window/tab) and check out HMA VPN, you get 30 days to try it out so if it doesn't work for you then just cancel and get your money back.
Using HidemyAss will make your online activity anonymous, so anything you do cannot be traced by T-mobile OR your ISP so it is perfect for downloading torrents or doing anything else you wish to remain anonymous doing.
Once you have installed the HideMyAss software on your computer you will need to start your tethering app in your phone if unrooted OR enable tethering if rooted.
Once you are sure your phone and computer have been tethered, make sure you run HideMyAss VPN and then select the server closest to you from the first tab in HideMyAss application so the speeds are fast after putting your HMA username and password in the respectable boxes before you start surfing the net or downloading otherwise you will get blocked by T-mobile before you even start.
Hope this works for you; it works for me, it will work for other cellphone carriers as well and will also work on iPhones, windows phones and any other phone; not just android.
You can configure your phone so that all internet activity done via your phone (ie torrenting) is untraceable by your cellphone provider (t-mobile, sprint etc); here are the instructions.