Well that explanation makes enough sense. I dont understand what verizon sees in the difference between physical tethering and wireless tethering. Just another way to hand you a bill thats far bigger than you expected it to be i suppose. Thanks again for the explanation Bob.
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Verizon, in its TOS, does not differentiate between wired-tethered and wireless-tethering. They seem to be focusing on wireless tethering because multiple users can tether wirelessly simultaneously; I am not sure but maybe wired-tether is limited to one device tethered at time.
Also, Verizon may not have a wired-tether product/app (Wired HotSpot for lack of a better term) at this time, so they have not developed a way to quickly, identify wired tethering, and guide you to the Mobile HotSpot sign-up or a warning page.
Again, these are my opinion, most likely yours will differ or you may have more complete information than I have.
Bob