matt_mu,
I have the same question. My iPhone is not jailbroken, but I have some free 4g hotspot that can be used, and the speeds provided are faster than local ISP companies. My current router is not able to be customized with open-wrt but I want to tether my iphone directly to the router. I do not want to use the wifi hotspot as the wifi is very congested where I live and as far as I know I do not get to choose which channel I want the wifi to be broadcasted from. Not to mention I get about a 30% loss of speeds and slightly higher pings over wifi. I've found USB tethering to be way more efficient than using the wifi hotspot.
I'm purchasing a female USB to male ethernet adapter simply to try it. I don't think it will work, as the router may need the necessary settings or software to know what is going on. Worst case scenario is that I'm out $6.00. It arrives today, so I'll update later tonight or tomorrow on my findings.
http
/www.amazon.com/Insten%C2%AE-Female-Ethernet-Router-Adapter/dp/B00AF1PHZC/ref=sr_1_1?ie=UTF8&qid=1430916052&sr=8-1&keywords=female+usb+male+ethernet
I've been able to tether to my laptop on Windows 8.1 where I can bridge the iPhone connection with my ethernet port which provides internet to my router. I've had success on Windows 10, but it's been quite buggy. However, I think it would be simpler to only have to plug the iPhone into the router.
Instructions for bridging iPhone USB and ethernet connections are as follows:
1. Connect your phone to your windows pc, enable USB hotspot tethering on the iPhone.
2. In the bottom right corner of the screen, right click the internet connection icon. Select "Open Network and Sharing Center".
3. When the "Network and Sharing Center" opens, click "Change Adapter Settings" located on the upper right hand side.
4. From there, find your iPhone connection and ethernet connection. Ctrl click them to highlight both of the icons. When both are selected, right click, then select "Bridge Connections."
5. If this doesn't work for you or you want to delete the bridged connections, simply right click the bridge icon that popped up (it looks like a router/modem), and select "delete bridge."
Apparently a Raspberry Pi can do a method similar to this one, basically bridging the USB and ethernet ports together. There are guides online, but I have not confirmed that they work. I have a Raspberry Pi lying around that I'll test it with if the female USB to male ethernet adapter doesn't work. Just a guess here, but I'm assuming a Raspberry Pi uses a lot less electricity than a full blown Windows PC.
One last thing: A customizable router with a usb port should be able to do what we want. For me, this is a last resort option because I'm a cheapass and I like my current router.
EDIT:
Received the female USB to male ethernet adapter today, it didn't work. Can anyone explain why this is? Could it work with an open-wrt capable router without a USB port?
Edit 2: I've contacted the company that made the router I'm using, they say it depends on how the Iphone data transmission rules are. I'm not sure what this means.
Upon contacting Apple customer service, they had no idea what the iPhone data transmission rules were. They wanted me to specify further, but I don't fully understand what I'm asking in the first place.
I'll ask the company who made the router for more info then contact my cellular service provider to ask about the data transmission rules, but I have a feeling they won't know what I'm talking about.
I'm probably just going to try the Raspberry Pi method after I dig just a little bit deeper.