You may have heard the Verizon iPhone will have the ability to become a personal hotspot which will connect up to five devices. You may have further decided this is a reason to switch to Verizon from AT&T. Now it turns out AT&T is evaluating this feature as well and may roll it out when iOS 4.3 becomes available.

What is unclear is if the 3GS and 3G will also support this functionality and if this is the case what happens to a carrier’s MiFi business when you can pick up a cheap iPhone which blends a smartphone and personal AP in one?

Now that AT&T has competition on the iPhone and iPad front, it will be interesting to see how they play their cards. It seems unlikely they can withstand the public pressure of disabling or at least not enabling a feature which Verizon is touting.