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All said above is true, so right now BT tethering is not a viable solution. That being said, it is possible to tether via WiFi if you have set that up on your phone. My current configuration is the HTC Incredible running SkyRaider 3.3.4 on Verizon. I have WiFi tethering on, and connect from my S7 via this set up. Works a treat!
The problem is that Android has very limited connectivity to other Android devices. Well, none, really out of the box.