Despite early reports of Windows Phone 7 supporting tethering, Microsoft has just confirmed that tethering will not be supported with the first release of Windows Phone 7. “Tethering” refers to using a mobile phone as a modem for a computer, usually connected via a USB cable or Bluetooth. The new Microsoft mobile phone operating system is now several features behind its competitors. At launch, Windows Phone 7 will not have copy/paste, third-party multitasking, tethering, replaceable memory cards, and will not be launching on CDMA networks (Verizon, Sprint) until 2011. I have been looking forward to WP7 for sometime now, but I disapprove the lack of tether support. Arguably the average user will not need tether support as WP7 is capable of doing the majority of mobile computing tasks. However, as a business user who spends a lot of time away from the office, the ability to tether my phone to my laptop does come in handy.

[cnet]