Unlike iOS, there are plenty of tethering options for Android, and most of them work well depending on what you're trying to do and the type of user you are. Some are wired, some are wireless, some require root, others don't, but we found that for most people, PdaNet is the best tethering option because it's reliable, accessible, easy to install and use, and easy to troubleshoot.

Platform: Android
Price: Free ($15.95 to unlock full functionality)

Features

• Offers wired tethering over USB or wireless tethering via Bluetooth to Windows and Mac OS systems
• Displays data usage in real-time
• Does not require rooting your handset to work.
• Includes an SMS agent so you can send and receive SMS messages while tethered to your computer
• Attempts to hide your tethering from your mobile carrier so you don't get in trouble for using it without a tethering plan.
• Free to use for 14 days, but after the trial expires, you won't be able to access secure web sites (sites that use SSL or require a login) without purchasing a license

Where It Excels

PdaNet is one of the first real tethering apps that appeared for Android, and in our opinon it's still the best. The 14-day trial is free, so you can get a feel for how well the app runs for you before deciding to purchase it, it supports Mac OS and Windows systems, and you have the option of tethering either wired via USB or wireless via Bluetooth. PdaNet is also one of the first apps that gets updated every time wireless carriers announce a new round of sniffing to see who's tethering without a tethering charge added to their monthly bill, so you can thank the developers for keeping up the cat-and-mouse game there. It's easy to use, easy to install on your desktop and on your phone, and it doesn't require root access to run, which is a huge point in its favor. What makes PdaNet a real winner here though is that it's easy to set up, easy to use, more reliable than any of the other tethering apps we've tried, and has support options available for you if you run into trouble.

Source: lifehacker.com