I just use my laptop to provide internet to my xbox. The xbox comes with the cable you need, and my brother helped me change some settings on my laptop to make the connection, and now anytime I want to go online with my xbox I just hook up my laptop to the cable (which I keep plugged in to my xbox already).
This is pure speculation, but Im thinking using the internet through the phone wont be fast enough to deal with playing two player games and stuff.
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if not, I'm pretty sure they sell a Wi-fi adapter for the Xbox.
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They do, but its 100 bucks. Way too expensive, IMO.