One of the new features in Google (Nasdaq: GOOG)'s latest update of its Android smartphone operating system unveiled today allows the phone to act as a WiFi hotspot for other devices, a feature that is likely to arrive on the iPhone and other devices soon.

The latest Android 2.2 "Froyo" update allows the user to set up WiFi or USB tethering for other devices on the fly. This means that Android users could potentially do things like connect a WiFi-only Apple Inc. (Nasdaq: AAPL) iPad to a 3G network via an Android phone. Google is calling this feature "a portable hotspot."

iPhone users have been long waiting for tethering features to be added to that operating system. Word is that the OS 4.0 update coming in June from Apple will finally add the feature.

We already have an idea of what operators are likely to charge users for the pleasure of tethering. Sprint Corp. (NYSE: S) has said that users can add a charge of $29.99 for connecting up to eight devices via WiFi on its new EVO phone. (See Sprint's $199 WiMax EVO Phone Out June 4 .)

The other big development for this version was -- as expected -- support for Flash video baked into the mobile operating system. This is in direct contrast to Apple, which has been vocal about the reasons about why it won't support Flash on the iPhone. (See Adobe Attacks Apple… With Love and Jobs Offers 6 Reasons Adobe Sucks .)See Google's video unveiling the new features of Android 2.2:



You can read more about the Android 2.2 feature set on the Android developer's blog. The update is expected to be available soon, with developers simply saying that it is "right around the corner."

— Dan Jones, Site Editor, Light Reading Mobile