Are you trying to create a Personal Hotspot & connect your iPad? If so, that should work. Read here:
Thanks wjosten. I have just managed to pair the ipad 2 which is wifi - and had to turn on hotspot. The ipad 4 is 3G and they won't pair at all - actually won't find each other even. Really I'm trying to figure out a work around for updates - seems the iPhone has to have wifi to do any updates, which isn't always convenient. So, if I can get it to use the ipad as a wifi hotspot then I can update easily. Seems I will have to keep the android phone for this.
I think this is the problem:
iPad or iPod touch: Locate the device that is sharing Personal Hotspot in Settings > Bluetooth and tap the device to begin the pairing process.
Note: You cannot share your cellular data connection with another iPhone using Bluetooth.
Since he ipad 4 is cellular then I suppose it won't work. Back to the android.
Thanks for the link wjosten!