Personal hotspot not getting router and DNS configured

My provider for cellular is "bob" (A1) in Austria.
I want to make my iPad to provide network access via cellular as a personal hotspot.
The network is broadcasted and I can see it at any other device when activating Wi-Fi.
When I connect it times out, the iPad does not provide DNS and router address to the client.
I have also an iPhone5 with the provider "drei" - it works without problem to activate and use the "personal hotspot" provided by the iPhone.
I contacted "bob" - they say there is nothing the provider can do about personal hotspot, it should work, I shall contact Apple support.
Any other experience/advise?

Update:  I have found that if I connect my iPhone via USB and share the personal hotspot via USB that it works fine.  But if I try and share it over wifi, it maybe lasts 5 mins then the blue status bar at the top of the iPhone, flashes on and off and the internet isn't shared. 
I have restored my iphone and updated it to 5.1.1, but still get the same!
Can anyone suggest anything? Please help
Thanks
Paul

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