When Instant Hotspot is supported, your iPhone or iPad can generate a hotspot for your Mac to use. Really convenient if you need internet on your Mac but don't have Wi-Fi around. As long as your iOS device has cell signal, it can create an internet connected Wi-Fi network for you. The iOS device must run iOS 8.1 or newer and the Mac must be one of the following models:
• MacBook Air (Mid 2012 and later)
• MacBook Pro (Mid 2012 and later)
• iMac (Late 2012 and later)
• Mac mini (Late 2012 and later)
• Mac Pro (Late 2013)

Your carrier also has to support the hotspot feature on your phone. Compatible iOS devices are:
• iPhone 5 or later
• iPhone 4s (sharing iPhone calls only)
• iPad (4th generation), iPad Air, iPad Air 2
• iPad mini, iPad mini with Retina display, iPad mini 3
The iPad models listed all require a cellular activity as well.