Turn off wifi on both iPhone and iPad
On iphone, go to Setting->General->Network->Personal Hotspot and set to On.
Turn on Bluetooth on both devices and connect
Now if iPhone has a Edge or 3G connection, you can use it on iPad (via Bluetooth)
I’m writing this post using iPad connected to my phone in this way
I’ve heard there may be restrictions according to your carrier, but this seems to work with my Vodafone account.
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