Well, it's about time. It seems as though Google's upcoming Android update, codenamed Froyo, will be including USB tethering. Better late than never, and very soon, if your Android phone is upgradable to version 2.2, you can turn your phone into a modem and tap into the high speed HSDPA connections. Further to that, the Froyo update will enable the Android phone into a mobile Wi-Fi hotspot.
Techcrunch - Google added a plastic desert sculpture of a frozen yogurt outside of their Android building today (here’s Eclair, the last version), indicating the imminent arrival of the next version of the Android operating system, Android 2.2, AKA Froyo.
In addition to full Flash support and a whopper of a speed improvement, we’ve just confirmed something that’s even more stunning. Froyo will have built in USB tethering so you can share your data connection with your laptop, something Apple and AT&T still haven’t managed to allow in the U.S. And even better: you can turn your Android phone into a portable wifi hotspot as well.
Flash support and now Wi-Fi enabling, the details of the Froyo update are, to say the least, very impressive. The Google Nexus One should be the first device to receive this firmware update, whilst news of its imminent update across other Android devices haven't been announced. Check out the full details of the Froyo update over here.