The 'Personal hotspot' option is gone from my iPhone 4. Why?
Solution 1:
Make sure you have an APN + Username & password set under Settings > General > Network > Cellular Data Network. The bottom option "Internet Tethering" has to be filled in to enable Personal Hotspot.
Apple KB article - iOS: About cellular data network settings (viewing or editing the APN)
Solution 2:
Today I get the option back. After 6 month I found Onavo app was the reason to disable "personal Hotspot". I just uninstalled it.
http://getsatisfaction.com/onavo/topics/my_personal_hotspot_configuration_has_gone
I wrote an email to Onavo support about it and got this reply
Dave NOV 09, 2011 | 06:44PM IST Hi Jitendra,
Thanks for replying.
We're sorry to hear that, still trying to find a solution for this. Our team is working on several solutions, will update soon. Regards,
Onavo Support http://onavo.com