IPhone 5's Bluetooth Not Staying Connecting For Continuity Support on Yosemite

Question

Devices:
Macbook Pro Mid-2010 running OSX 10.10.2
Iphone 5 running iOS 8.1.3
*NOTE: I understand that due to the version of the Bluetooth protocol in my machine, not all continuity features are available (Handoff, Air Drop, MBP Instant Hotspot)
However SMS to IMessage and the ability to make and receive calls from my Mac should be OK according to Apple's system requirements one-sheeter:
System requirements for Continuity on iPhone, iPad, iPod touch, and Mac - Apple Support
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Here's my problem.
I finally took the plunge last night and updated my iPhone 5 from 7.1 to 8.1.3 to access the iCloud Drive and additional continuity features integrated into Yosemite.
When I tried to pair my iPhone 5 with my MBP over Bluetooth, all seemed to go well for the first 5 seconds.
- Both devices were in discovery mode.
- Mac saw the phone and displayed a security code
- iPhone displayed the same security code and asked if I would like to pair with MBP
- Pairing took place. Each devices Bluetooth profile / device showed up in my MBP Bluetooth's Preferences  and in my iPhone's Bluetooth.
- 5 seconds later, there's no connection between devices.
My iPhone displays:
"Connection Unsuccessful: Make sure [Macbook Pro] is turned on and in range." (The phone is 5 inches away)
Then sometimes I get this message:
"Connection Unsuccessful: [Macbook Pro] is not supported.
No rhyme or reason between the two either.
Here's the baffling part: When I activate my Phone's HotSpot function, the Bluetooth works and connects with my MBP allowing it to use my cell phone network's data for internet connectivity.
I don't understand what is going on or how to correct this? Can anyone succinctly explain how to correct this problems in layman terms?
If the devices can communicate long enough to exchange security codes and verify their identities, then use Hotspot,  there is clearly a data exchange happening. Where is the break down taking place when it comes time to stay connected to so I can continue to use the limited continuity features.
I've seen this question posted before by people having problems with many different model years of MBP including the most recents models, so I know it's not mutually exclusive to my model year, but cannot seem to find clarity on an answer.

Answer 1

Lawrence Finch
ShadowDancer1000 wrote:
I wish Apple would have provided more detail on how it worked. I wouldn't have posted this if I new that SMS & Mac Calling had nothing to do with Bluetooth pairing.
You mean like this? Get help using Continuity with iOS 8 and OS X Yosemite
Please note how Apple articulates this though.
Check your settings
Check the following settings on your iPhone, iPad, or iPod touch:
Go to Settings > Wi-Fi and turn on Wi-Fi if necessary.
Make sure your iOS devices are connected to the same Wi-Fi network by going to Settings > Wi-Fi and comparing the name of the network each is on.
Go to Settings > Bluetooth and turn on Bluetooth if necessary.
Go to Settings > General > Handoff & Suggested Apps and make sure Handoff is on.
Go to Settings > Phone. If you see Wi-Fi Calling, turn it off.
Sometimes things have to be explained in more detail for the general consumer who has been conditioned for decades to think about wireless  cellphone audio / light data to [anything other device else] connectivity in a certain fashion. That is to say Bluetooth dependent ...
For the non-technical person, which overwhelmingly many Apple users are, they would see that bulleted point and think if Bluetooth is not paired and active, then they would not received the full scope of their Continuity features.
It would have been better for the copywriter who wrote this to (*) footnote this entry and explain that while Bluetooth recognition may be necessary between Yosemite and iPhone, SMS Push to iMessage and Mac Calling does not require an actively paired connection as these functions are dependent on iCloud and both devices being registered on the same WiFi network.
Thank you to all who helped me get my mind around and figure this out.
It has also opened my eyes to how iCloud has become a critical link in Apple's overall walled garden  and business strategy.