[edit] what I expect is this: if I'm connected to a wifi hotspot to browse the Internet and I receive a telephone call, I should not drop the connection to the hotspot (am I wrong in understanding that this is NOT what this iPhone does?).
[edit] what I expect is this: if I'm connected to a wifi hotspot to browse the Internet and I receive a telephone call, I should not drop the connection to the hotspot (am I wrong in understanding that this is NOT what this iPhone does?).
The phone acts as a WiFi access point, using the cellular network to relay the devices connected to it to the Internet.
Of course, it's worth noting that tethering isn't a "service" that carriers have to build or support. It's an inherent capability of a sufficiently advanced computing device that has access to two networks simultaneously. But in a textbook case of non-neutrality, AT&T (and others) prevent you from using that capability unless you pay them to remove the entirely artificial restriction.