"be cautious of that, they can monitor what data usage is being used on that phone, and if they catch it i'm sure they can charge for it..."
Strickly speaking for Unlimited Mobile data...
The reason Verizon can monitor "hotspot" data and limit you is because the app that came with the phone will use a 172.xx... ip address. This notifies the system (Verizon's data server) that you are tethered and will start the 2GB limit and charge you accordingly.
The rooted method that people are refering to (application) will use
a 192.xxx... ip address. This essencially masks what kind of data is being used. So for all Verizon knows, this is mobile data and dosen't count against you.
Thank you for reading. Go Android!
Love,
Lord Dextro