[Q] Portable Hotspot/Android Tether limited connectivity

For some reason, when I tether my phone's Internet it works fine for a moment or a long time and then it switches to limited connectivity. No Internet connection on any of the connected devices, even if I reset the connection. Only restarting my phone seems to work.
Using stock Android 4.0.4 and the stock tether.

Has anybody else experienced this? Any solutions would be greatly appreciated.