AT&T has denied that it tried to bring in capping of iPhone 4 users yesterday. Apple fanboys, who already had to put up with a broken phone, watched in horror yesterday as upload speeds shrank to dial-up speeds.

Many felt that AT&T was experimenting with capping as its networks could not cope with that many mobile connections at once. However the telco said it was all a terrible mistake. Today, the wireless carrier has blamed software from Alcatel-Lucent for the issues, saying a fix is in the works. Strangely it claimed that only two percent of users were affected by the defect.

Lucent declined to offer a timetable for the fix, and would not reveal which areas were being affected. Customer complaints have been filed from NYC, Central Jersey, Boston, Orlando, Seattle, South Jersey/Philly, Columbus, Cleveland, West Houston, Phoenix, Northern Colorado, St. Paul/Minesota, Suffolk County/Long Island, Quad Cities, South Jersey, Denver, Detroit Metro, Cincinnati, Baltimore, Salt Lake City, Las Vegas, Kansas City, Fairfax, and Minneapolis, so far. This is a fairly big two per cent.