Yes. You can set it up as a wireless access point, at which point other WiFi devices can reach the Internet through it. Make sure to check your telco's tethering rules though, as many of them charge extra for the feature.
You can also use bluetooth.. Which I prefer. For some reason iOS tethered devices on Wifi will disconnect as soon if left idle for a short period, and you then have to reconnect manually (in my case anyway). Bluetooth on the other hand remains connected until you turn bluetooth off.
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