Are you confusing Bluetooth with WiFi?
Bluetooth is a short range wireless communication method, generally used for headsets and handset-handset file transfers
WiFi is proper wireless networking, allowing you to use hotspots to connect to the internet.
To add on to what hotphil said, you can think of bluetooth as a wireless usb port.
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So the new iPhone has bluetooth with it. In order to use this do you need to subscribe or pay to use the internet or can I just use it like a PDA with bluetooth for free wherever there is a hotspot?