I have found that trying to connect bluetooth from your iPhone to be very tricky. You have to try everything 3 times for it to finally work. My computer is bluetooth, but in order for my phone to see my computer you have to turn on the bluetooth exactly the same time you select the bluetooth device on my computer. It's trial and error. I would suggest to turn off bluetooth on the phone and keep trying to connect. I finally got bluetooth tethering working on my phone, but its very frustrating!
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How to connect iphone with TomTom XL ONE
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