In case anyone reads this post, turns out that Orange UK did decide to block tethering and this somehow coincided with me changing my phone. To be clear, tethering is still possible (as per their own website), it's just that they now switch it off by default and you have to ask them to turn it on. Of course they didn't tell me this, leading to many hours of wasted time on my part trying to sort out the problem. Very unimpressed.
Orange didn't block tethering with my old phone so I'd be surprised if that's changed with the Nexus 4. I have tried resetting with no success. Just tried taking encryption off as you suggest - same result - I get a strong connection but the wifi signal is grey not blue and I'm unable to actually connect to the internet. I'll keep on trying...
I recently upgraded from a Huawei Ascend G300 (stock ICS) to a Nexus 4. Never had any trouble tethering the G300 to my wifi Nexus 7. Now I've got the Nexus 4 I can't do it any more - a connection is made but no data gets transmitted (wifi icon on the Nexus 7 shows full bars but remains grey). Also tried with bluetooth: same result. Was and am on a monthly Orange plan. Anyone else had any trouble doing this?
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