It really bothers me to share that my experience with the iPhone 4 has turned annoying within the last one month. The issue came to my attention when I received the first SMS notification from AT&T on May 7th, 2011 saying that I have used up 65% of my 2GB 3G access. It was followed by 100% notification on May 12th, just one day before the end of my billing period. I was charged $10 for extra usage. This kind of a thing never happened within the one year period I have signed up for AT&T and iPhone. I have called up the customer service and they made a one-time adjustment to remove the extra charge. Unfortunately, that didn't solve the problem. This morning (the 10th day of the new billing cycle) I woke up to an SMS saying that 65% of data plan is again dissipated! Strangely, the AT&T usage reports shows 1519MB of usage! On the other hand, I had reset the usage statistics on the iPhone 4 (Settings>General>Usage) at the beginning of the new billing cycle  so that I can track the network activity. The screen reports 7.3 MB of Sent and 281 MB of Received data under the Cellular Network Data section with a timestamp of May 13th 4.43PM underneath. Clearly, the AT&T report is 5 times greater than what iPhone tells me! I captured a screenshot as a proof and called AT&T again. Explained the problem, transferred to Apple, Transferred back to AT&T and finally to an AT&T manager, Jennifer. Spent close to 2 hrs on the phone with all of those folks. Here is a quick summary of the issue again:

-I was home all the way from Friday evening 5/20 11PM till 5/21 7PM.
-Have Wi-Fi at home and iPhone connects to it  at home.
-Fully charged the phone about 2PM on 5/21.
-Left home at 7PM and came back 5/22 2AM approx.
-Noticed (and was frustrated) that the battery almost drained completely.
-Received te 65% warning message on 5/22 10 AM.
-Captured the screenshot showing 288.3 MB usage on iPhone screen.
-Checked my network activity at my account at
(05/22     01:19 AM     phone     Internet/MEdia Net     Sent     504846KB)

IMG_0555 Taken on 5/22 12:21:57 PMUnfortunately there is no help from either AT&T nor Apple. I'm concerned about 3 things:
-Where did this phone connect on the internet?
-Why is the activity not reported on Settings>General>Usage menu?
-I'll definitely have an overage at the end of this cycle and pay lots of overage fees?

AT&T can't answer the first question (probably because of privacy they don't track where the user connects to) that’s why I can't track it to a particular App on my phone. Because  I can't track it to an App or the source of the problem, the issue keeps (will keep) going. If I delete the Apps on the phone to stop network activity, what is the point of having a smart phone?

Because iPhone only reports a 288.3 MB usage itself, is something going on under the hood or is my phone hacked? (Btw I have been a good citizen of AT&T and never jailbroke it or play with it that way.)

Because this thing sucks the battery, will I have to charge it twice a day??

All we shall see. I wanted to share this problem with the online community immediately. Please let me know if anyone has experienced something like that.

I was only able to find out a similar discussion titled 'Phantom Data Usage' here:

My phone is at iOS 4.2.1 currently. I haven't installed the latest iOS 4.3.3 because the new features AirPlay etc. was not relevant to me. I'll go ahead and update it now anyway. Notifications are off for most of the applications and only ON for the few Apps I use frequently, like Facebook and Live Messenger. The memory level was getting lower nowadays with a remaining of about 165 MB within the last week especially. I do use a few video streaming  applications but haven’t used any of those within the mentioned timeframe this weekend. Interesting. Interesting…