We've been reviewing cellular modems and hotspots since 2005, when they were the only reliable way to get mobile Internet access. In the past few years, though, many people have gotten smartphones, most of those smartphones have 4G LTE, and most of those LTE phones have a hotspot mode. So what's the point to having a hotspot anymore?

The difference breaks down to business versus pleasure, with a sideline in vacation homes. As a frequent business traveler, I still rely heavily on hotspots and modems for reliable all-day connectivity that doesn't impact my primary phone. So ask yourself: Do you need a hotspot for business or personal use?

Business Travelers Probably Need Hotspots

If you're at a trade show or in a long day of meetings, you're already playing brinksmanship games with your smartphone battery. Hotspot mode is one of the most battery-intensive things you can do, almost guaranteeing that you'll be looking for a charger (or a secondary battery) by the end of the day. Dedicated hotspots, on the other hand, often have enough life to run all day long.

Hotspots also tend to support more devices and more security options than the hotspot mode on your phone. Most phones can link up to five devices; hotspots can handle ten or more, with better support for things like VPNs, parental controls, and port forwarding. If you're setting up a mobile office for a work group, a hotspot, not a phone, is what you want.

Additionally, if your business trips take you abroad, grabbing a hotspot can save you from racking up costly roaming fees. The Xcom Global International MiFi Hotspot offers unlimited data connectivity for a flat fee in nearly 200 countries. 

I haven't seen a lot of difference recently between the Wi-Fi range on hotspots and industry-leading cell phones. But a top hotspot will get much better LTE reception, especially when hooked up to an inexpensive external antenna. So if you have a vacation home out in the woods, a hotspot may be a more affordable answer than a more costly whole-house WeBoost signal booster system.

Also, this may seem obscure, but not if you're a business traveler: Hotspots are usually a discrete expense which you can charge to your company. Burning your own personal data plan for business hotspot use may get you a thumbs-up from your company's accountant, but it may also mean you can't use Yelp when you're out with your friends later that night. Carrying a company hotspot keeps business and pleasure comfortably separate.

Most Consumers Don't Need Hotspots

The advantage of using the hotspot mode on your phone, of course, is that it's a lot cheaper. Your existing wireless service plan probably includes some hotspot usage, and if it doesn't, it'll be cheaper to add a few gigabytes of hotspot use than to buy a whole new dedicated device. So if you're only considering a hotspot for casual use, you're almost certainly better off just using hotspot mode on your phone.

If you intend to dip more heavily into hotspot use, make sure to get a good data monitoring application such as Roamy or Onavo. As no carrier offers unlimited hotspot use (even on Sprint and T-Mobile unlimited data plans), you'll need to stay within your limits.

Which Hotspot Option Is Right For You?

For occasional use—or even quieting the kids by streaming Netflix in the backseat—there's no need to go beyond the hotspot mode on your phone. If you've never done this before, check out our story on How to Turn Your Phone Into a Wi-Fi Hotspot.

But serious Internet access needs dedicated connectivity. And if it's for business, you can likely expense it. If that sounds like you, check out The Best Mobile Hotspots on Every Carrier.