Samsung J700m 5.1.1 Lollipop- Phone Surfs, but no connection sharing/hotspot ...

Suggested by admin to post here.........I have a J700m 5.1.1 lollypop, Baseband J700MUBU1AOL2, Kernel 3.10.61-919542, build LMY48BJ700MUBU1AOL2, SE for Android Enforcing SEPF_SMJ700M_5.1.1_0043, KNOX 2.4 ........, and am trying to use it as a hotspot and/or USB teather to access internet. All devices connect to phone/router....DHCP on router/phone work fine,,,assign DNS, IP, Gateway .... all looks good. Phone will surf without problems, but will not pass traffic as a router to internet. Tried setting up as static connection, rebuilt APN, New SIM, Factory reset, etc.. talked to local Telco(Pine Cellular in S.E. Oklahoma). Swap SIM to old phone and all is fine.Pine is a GSM provider with no restrictions. I can ping phones internal IP 192.168.1.14, but nothing outside of phone using it as a router(8.8.8.8)....Phone will pass all traffic to and from handset(phone surfs fine) just not through gateway. I am out of ideas except 2... could it be trying to pass all traffic through VPN that does not exist/ not set up or needed..or something like wlan=disabled.....or something like that? Hope this makes sense because I don't want to downgrade phones and they do not have a clue...Samsung is horrible, even second tier support . It acts like a firewall on the phone or similar is blocking all traffic when used as a router to internet....wifi hotspot, USB tether nothing works. Tried installing FoxFi...same. One of the Techs thinks it is firmware issue because the phone is from the Mexican market and I am in US. I thought about rooting and flashing a new rom, but it is a new phone so by, by warranty.... I have 2 of these, mine and my wives. I have rooted, bricked and repaired my old XCover so I have just enough knowledge to be dangerous.
+++++++++++++More info++++++++++++ my reply to answer from Android Central member who thought it was blocked by provider.
........I thought the same thing( telco blocking tether)...spent hours on the phone with techs. The company is small and has only 3 techs. I can swap my sim card to my old phone, daughters phone and a old Moto Blur and all work perfect... One thng I noticed when using USB tether on a win7 machine....connects ...DHCP assigns IP, DNS...etc and I get a balloon in the lower right corner of PC " additional login may be needed, click to open browser.." as if I was at a hotel or something... I contacted the CEO and was told there is no blocking of connection sharing. I tried to talk her out of a S5 in trade, but that was a no go.

The Telco wants me to take a different phone,(a huawei).. 16G down to 8G on phone, 5.5" screen to 5", 1.5G ram to 1G....... nothing they want to switch to is comparable and I am signing a 2 year contract, it is like signing a lease for a Cadillac Escalade and they want me to accept a stripped Tahoe with cloth seats for the same price. I would love to find the problem.
Thanks for any help.

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