Setting up an Android mobile phone for hotspot is very easy. First turn on Data Connection from Settings > Wireless and Networks > Mobile Networks > Data connection. Once the Internet is turned on, go to Settings > Wireless and Network > Portable Hotspot > WiFi tethering. Wait for the process to initialize, then you will have the possibility to configure it from the Notification area. Pull down the notification bar and tap on the Hotspot. Change its settings (SSID, encryption, filters, etc) and that's it. Now you can use any surrounding WiFi enabled device to connect to the hotspot.
