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I would like to block ports and network traffic when using my jailbroken iOS device as a Personal Hotspot.

The reason is I don't want my backup program, computer updates, or any high bandwidth usage applications to be able to download or upload too much data.

Is there a way to do that using iOS itself or an application?

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up vote 8 down vote accepted

For outgoing connections, the only jailbreak application that exists is Firewall iP. It behaves similarly to the Mac OS X application Little Snitch.

For incoming connections, you will have to use a regular firewall system such as ipfw.

Disclaimer: To anyone actually looking to use ipfw on iOS, you're going to have to patch the kernel to include support for pf. Documented, nobody has ever done it, but it's not technically impossible. The jailbreak itself patches the kernel upon boot, so this would require the same exploits used during that process. If you have happened to patch pf into the kernel, then proceed with my original answer below.

Add the http://theworm.altervista.org/cydia/ repository in Cydia > Manage > Sources > Edit > Add. Then install the MTerminal app from the BigBoss repository and the network-cmds package from The Worm repository. Then you can go into the terminal app you just got and run ipfw. This will let you write to your firewall tables. If you need a tutorial on how to use ipfw, there's a good one here.

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2  
One concern is that insanelyi is primarily a pirate repository. A reliable and authoritative place to get a working version of Mobile Terminal for iOS 4 and 5 is to download the .deb file from the official Google Code project site and then install it with iFile or by placing it in the /var/root/Media/Cydia/AutoInstall directory. Another option for getting command-line access to your device is to install OpenSSH and an App Store SSH client app such as iSSH or Prompt, and then SSH to localhost. – britta Apr 27 '12 at 23:43
    
Yes, that's the most ideal place to get MobileTerminal, but it's a little more hassle. One could remove the repository after installing MobileTerminal if they had some worries, but your advice is best either way. – Andrew Larsson Apr 30 '12 at 15:57
1  
Here's a non-pirate repository that hosts Mobile Terminal 520-1: http://www.ijailbreak.com/repository/ – britta Apr 30 '12 at 20:55
    
Thanks for the alternative. It's nice to see that there are some legal-friendly repositories hosting some good apps. – Andrew Larsson May 1 '12 at 17:18

You could look into using the tweak Firewall iP (a paid package hosted by BigBoss repository) - it provides a number of options for controlling outgoing connections from your iPhone.

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