next version of Google's Android platform bring native USB tethering and Wi-Fi hotspot capabilities

The next version of Google's Android platform, codenamed Froyo, looks to kick Apple where it hurts. While we've already learned that v2.2 brings native Flash support, more memory, and apparently a huge 450-percent boost in overall performance (which 2.1 was supposed to offer but apparently did the opposite), the next spike in the groin is the platform's ability to not only provide native USB tethering support, but act as a portable Wi-Fi hotspot.

As for USB tethering, the feature is somewhat available through 3rd party applications. These comprise of free options available on the Market, typically locking out support for secure connections (https) and forcing users to deal with the limits, or to upgrade to the paid version. The apps range in price from $9.95 to $23.95, and work rather well in getting the PC to recognize and use an Android-based phone as a wireless modem.But the big shocker here is the ability to use an Android-based device as a Wi-Fi hotspot. At the moment it's unknown if this feature will allow for more than one connected device--Verizon's own pocket-sized MiFi Portable device allows up to five connections at one time. It will also be interesting to see if Verizon will actually allow the hotspot feature for its Android-based phones--there's a good chance the company will block Wi-Fi tethering, as it would obviously compete with its pricey MiFi device.
Will this next OS update put a hurt on Apple's iPhone? If anything, it will help bring the OS up to speed. Apple already inserted tethering into the iPhone OS last year, however AT&T has delayed the feature's official launch since (at least) September 2009, citing network upgrades. In the meantime, Google is expected to reveal the full specifics of Android v2.2 next week at the company's Google I/O conference in San Francisco. We look forward to Froyo's other hidden secrets.source