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Using a ChungHwa Telecom GSM SIM Card in Taiwan. The Verizon phone w/local SIM works fine for calls, data, texting. Just can't use Wireless Hotspot or even tether with bluetooth. I even tried both pre-paid and standard GSM SIM. No luck.
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Is the phone a Verizon branded phone? Mobile hotspot requires an APN specific to the carrier you're using, as most carriers differentiate Tethering traffic from phone traffic for billing purposes. Most phones sold by Verizon with Verizon-branded software will attempt to activate Hotspot against a Verizon APN. If it's a Verizon-branded Mobile Hotspot app, the app expects a Verizon SIM installed before it'll work.
There are alternative apps which can help turn on Tethering if you're stuck with a Verizon branded Hotspot app/extension/branded OS. Or someone else might be able to supply a workaround.
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On another note because the edit timer beat me.
If you're visiting Taipei by chance, it might be worthwhile to look into using the city-wide Wi-FI provided. It's normally free for residents, and comes with a small charge for visitors.
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Unfotunately, it is Verizon branded phone. Before I purchased it, the Verizon sales rep said it was "unlocked",but I think it just meant that I can use a GSM card. I guess the verizon phones are still locked down