Mifi is a tiny, credit card sized device which allows you to carry a wifi hotspot with you wherever you go. Simply turn it on and you can use any wifi enabled device (iTouch, iPad, etc.) to connect to the internet. Of course you must pay a separate monthly fee to Verizon.
If I were willing to pay, I could also use my Droid 2 as a tether or wifi hotspot for my other devices. In order to use this feature, you must pay Verizon a fee on top of the existing cell phone and data plan charges. Tethering other devices allows you to connect your phone to devices, usually via a USB port, and allow those other devices to access the internet. Using the Droid as a wifi hotspot provides the same functionality wirelessly. Although this seems convenient (and can be great if no other options are available), until the full rollout of 4G the connection speeds are simply too slow to provide a comparable experience to using your computer at home.
http://www.wired.com/gadgetlab/2009/05/verizon-mifi-personal-wi-fi-coming-this-month/
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