Don't throw your iPhone in frustration just yet, AT&T says better service is (slowly) on its way.

Last December AT&T decided to start doing something about that issue with it’s new iPhone app, “Mark the Spot.”  Mark the Spot is an app that allows users to tell AT&T exactly where their phone had a problem with the network such as dropping a call, slow connection speed, no coverage, and other issues you’d typically have with a 3G phone.  Now it looks like AT&T is starting to do something about the problems {Electronista}.

Now, with the release of the iPhone 4 looming, AT&T is letting customers know that they’re trying to fix the problems.  Those who have reported issues with the coverage in areas are getting text messages from AT&T telling them that area will have “additional network capacity” within 60-90 days.  Not exactly the fastest the company could be moving, but still relatively fast.

Perhaps this is what Steve Jobs meant at the D8 conference when he proclaimed that by the end of this summer things will be getting better {All Thing D}.  Paired with the fact that the new iPhone 4 has an innovative design with the metal frame on the sides of the device acting as the antenna, it could very well mean better coverage for iPhone users.

However, we’re starting to see some weak 4G connection emerging in New York City, which means Sprint is moving fast with coverage to help sway people to the EVO 4G {Engadget}.  It could help create some competition, but given that Apple sold 600,000 iPhone 4s in the first day of pre-orders, it is rather unlikely that the market will be equalized right away, even if the EVO 4G is a worthy competitor.

After thousands of tests in 18 cities, the test came back with the almost surprising conclusion that AT&T is the fastest network out there right now. Considering the notoriously unreliable phone coverage of the network in places like New York and San Francisco, that might be the saving feature that convinces iPhone users to stick with AT&T if and when the rumored Verizon iPhone comes to fruition.  The iPhone carrier came out as the fastest in all areas of the US aside from the Northeast.  It is worth noting that technically, Sprint’s 4G network was the fastest that was tested, but it was only available in 9 out of 18 cities tested so it wasn’t counted. {PC Mag}

In the Northeast, T-Mobile was declared the fastest thanks to it’s improved network that it rolled out in New York City recently.  It also had a network on par with AT&T’s in Boston, Baltimore and Washington, DC.  Sprint’s 4G network was only available in a few markets, but had an average download speed of 2.1 Mbps, as opposed to AT&T’s national average of 1.79 Mbps.

Of course, with T-Mobile rolling out it’s faster network in more cities, and Sprint continually rolling out it’s 4G network, these numbers are subject to change over time.  AT&T, Verizon and T-Mobile are all looking at 4G rollouts starting in 2011 at the earliest.

The Sprint and Verizon networks have been known to be generally more reliable, if not as fast and unable to do voice and data at the same time.

Keep in mind that speed doesn’t always mean reliability, and that good data speeds don’t mean great calling quality or service.

If you want to talk to your friend who’s wining and dining in Florence for a semester, there’s good news for you: the Skype 2.0 app is here for the iPhone. Granted that she has her iPhone with Skype 2.0 as well, you can talk to him or her, wherever or whenever — for free, via 3G. And with excellent, “CD” quality.

But hopefully your friend is coming back before August, because that’s when they’re going to start charging a monthly fee to use it. {9to5mac} Does this seem fair to you?

• Yes, if you use Skype via regular phones, there’s a fee. It is long-distance calling, after all. BUT,
• Skype is free. Period. And granted, an iPhone is a phone at the end of the day, but isn’t a data plan fee for 3G coverage enough? Apparently not.

But we wouldn’t scowl at Skype just quite yet. There’s no saying that good ol’ Steve Jobs, one of the few powerful men in this world who can get away with grand decisions with the “because I said so!” excuse, isn’t in charge of this decision.

Or maybe AT&T is just ripping people off. According to Gizmodo, “the folks at Skype are now saying that a Skype app will hit the Android Marketplace later this year and be available to everyone regardless of carrier.” Skype, you’re off the hook.

Whoever’s to blame, take advantage of it while you can! Although, our real question is, when will they enable video calling? With the dual cameras widely expected based on the leaked iPhone deconstruction by Gizmodo, the wait may not be too long.