Tethering Macbook Air to Iphone 5s for Internet

HI All
I'm currently trying to tether my Macbook Air to my Iphone 5s so that I can connect to the Internet via 3g if I'm working away from a wifi spot.
I understand from the shop that this is possible, but I can't seem to get it to work
When I connect via the macbook, I find the phone OK and I then  get prompted for a security code verification, which matches fine.
However, the connect is not then made.
When I click on the macbook under bluetooth settings/devices, it shows the device as unconnected. When I click to connect, it comes up with the message;
Connection unsuccescful, 'Graeme's Macbook Air' is not supported, and then only gives the option "forget device"
I've unpaired and repaired it a couple of times, but repeats with the same message

look for your phone under wifi, not bluetooth.
make sure you have hotspot turned on, on the phone.
does the blue connection bar ever appear on the phone.
I use my Air all the time in the backwoods with the iphone wifi hotspotting, its very handy and usually foolproof (it didnt used to be a couple years ago however)

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