AT&T Wireless

Apple now claims an error in the iPhone 4 firmware is responsible for the dramatic drop in signal bars some have experienced when the device is held a certain way. An update for iOS 4 will be released in the coming weeks to address the problem, but in the meantime several lawsuits have been filed against Apple over the issue.

The most recent suit was filed Friday in the Northern District of California and accuses Apple of false advertising, breach of warranty, and unfair competition among other complaints. The plaintiff, Steve Tietze is seeking class action status for the case and contends that Apple is guilty of "misrepresenting and concealing material information in the marketing, advertising, sale, and servicing of its iPhone 4 - particularly as it relates to the quality of the mobile phone antenna and reception and related software."

AT&T Wireless plans to increase their early termination fee (ETF) on all smartphones from $150 to $325 starting on the first day of June. For those who are happy with their service and plan to keep their iPhone there's no reason to worry. If you're interested in breaking your contract before two years is up, there's less than a week to act before you pay 86% more.

Verizon Wireless recently jacked up their own ETF charges to $350 for smartphones. The reason why many carriers charge this fee in the first place is to help recoup their investment on subsidized mobile phones. If customers bought a cheap phone and immediately quit their contract, the wireless carrier doesn't have time to make up the difference in monthly service profits.