According to Phone Scoop, they received an email from a Verizon Wireless spokesperson that said the Motorola Droid, which should be getting Android 2.2 very soon, will not receive the ability to act as a mobile hot-spot or tether, because it "doesn't have [the] hardware to support a Mobile Hotspot." This announcement comes as a surprise to those already tethering with their phones using apps available o the Android Market.
The same Verizon spokesperson claims that "With tethering there is no Connection on the PC side that will allow you to tether the device so the answer is that option isn't part of this update."
Engadget thinks that "Motorola and Verizon aren't passing over the feature because of a lack of hardware, but because of too much hardware -- namely, the Droid 2 and Droid X."
AndroidGuys believes that this feature won't be held back from the Droid completely:
The reality is that Verizon wants to monetize your ability to use your phone to it's full potential. With the tiered data plans they are getting ready to unleash on the public, it is not surprising to see this kind of announcement. I would wager that we will soon see an announcement saying that you can pay a monthly for this kind of functionality, which is too bad for Verizon customers, and a harbinger of things to come with Verizon.
For those of you with the Droid, or the Milestone, Android Central notes that apps such as "pdaNet and the other tethering options on the Market just got a lot more attractive to Droid owners."
Image from Engadget