Is your phone not connecting to 3G or the 3G data is not working? For 3g data (or even 2G data) to work i think you have to edit carrierdb.json file. This link may help
If that also doesn't works the OP may help. BTW you are on which network. I'll be trying my MTNL sim in veer today, to check the 3G connectivity and update.
@Op, do you necessarily need free tether for tethering? The Veer's inbuilt tether won't work? I'll check this also today.
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BTW if you are on either vodafone or Airtel you need not change the carrierdb.json file. the apn settings of most (not all) circles for Vodafone and Airtel is already there in Veer's orig carrierdb file.
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Update.. I MTNL 3g now works with the new file obtained from above link.. Yet to test hotspot feature once i get some time, even if it doesn't I think some third party app like free tether will make it possible.