I'll post explanation at the end for those interested but, this should fix it for you:
1) You need something with a high bt polling rate that sends very little data, gear location bridge will do well
2) Using gear location bridge, connect it and set the 'gps location bridged' toggle - this has a high polling rate and will drain your battery a lot faster, but you can use it only when you need to.
With that enabled, your download speed should be over 1 Mb/sec.
My best explanation:
- Gear Manager is reserving a lot of bandwidth causing the tether to be much slower, or it is somehow limiting the rate.
- Enabling the high polling rate allows the data to piggyback on the gps packets and as a result increases your tethering speed.
For me, without that enabled i was getting terrible ping, 0.02 Mb/sec download, with that enabled i get about 200ms ping and 1.2Mb/s download.
I'm happy with this fix. I'm not familiar with android dev and won't even dare try to dig through the api to find a more elegant solution, but if someone else with the knowledge can, i'm sure it would help quite a few people.