There has been a lot of concern over the last few months about the Carrier IQ feature that is present in the iPhone device as well as a lot of other phones out there. It is thought that this software will actually allow the network operator to track what you are doing on your phone and use the data in their research and things like that. A lot of people feel concerned about privacy these days and most people with an iPhone will be looking to turn this feature off. Luckily, this is entirely possible.
Apple has actually issued a statement following the concern over the Carrier IQ saying that in the latest iOS 5 upgrade, they no longer support the software so it should be turned off by default. However, iOS 5 does still have metrics software installed and in order to make sure that this is turned off on your phone, all you will have to do is to go into your settings menu and click location services. After this, you will need to scroll to the bottom of the window and click system services. In this, you can turn off the Diagnostics and usage setting. This will ensure that no information about the usage of your phone is sent to anyone as you will not be contributing with usage diagnostics.
If you are concerned about privacy, we highly recommended doing this with your iPhone.