Given the proper hardware and software support, therefore, a cell phone that fits these characteristics can be turned into a "personal mobile hotspot" capable of granting Wi-Fi access to the Internet wherever it can receive a data-capable cellular signal. Essentially, your smartphone serves the same purpose as the cable modem or wireless router you probably have in your home, except instead of having a hardwired connection to the Internet at large, it uses the same 3G cell connection that you use when you're out and about and surfing the Web.

Verizon's mobile hotspot feature allows customers to share their 3G connection with up to five other devices simultaneously, all without any need for cables--in fact, once you've set up your phone to act as a hotspot, you can even slip it back into your pocket or bag.

But the feature isn't free: it currently costs Verizon customers an additional $20 per month to get the hotspot feature, and that's on top of an existing data plan. Furthermore, Verizon allows users of its $30 per month unlimited data plan to add the hotspot functionality to their package. But that unlimited data isn't for use with the hotspot: when you enable the feature, you'll instead be beholden to a 2GB data limit for anything using the smartphone's 3G connection--including the smartphone itself. Exceed that 2GB limit and you'll be charged $20 per extra gigabyte.

Verizon didn't specify during its press conference whether or not the existing pricing model and data limits will be extended to the iPhone.