How to fix connection issues with Instant Hotspot in iOS 8.1 and OS X Yosemite

“If you’re running iOS 8.1 on your iPhone or iPad and have OS X Yosemite on your Mac, you can now use your cellular connection for a new feature called Instant Hotspot. The main appeal is that it can automatically detect all your devices so you don’t have to fiddle with tethering settings.”

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