The iPhone can connect to the internet through both Wi-Fi and EDGE. Wi-Fi would be the wireless network at your home or business. When the iPhone connects to the internet through EDGE, it is actually connecting through the AT&T phone connection (or any other service provider the iPhone works with in the future).
To the connect to the internet, you simply need to open up Safari (which is the internet browser used by the iPhone). If you're used to using a pc, think of Safari as the 'Internet Explorer' that the iPhone uses. You can use Safari the same way you could use Internet Explorer.
Once you open up Safari, the iPhone will attempt to connect to the internet. If there are wireless networks available wherever you happen to be, the iPhone will prompt you to choose one to connect to. If you're trying to connect to a network that has security, you will be prompted to enter the password for the network.
If you want to check to see whether there is a wireless network available where you live, work, or play, go to 'Settings' and then 'Wi-Fi'. The iPhone will show you all of the wireless networks that are available.
If there aren't any wireless networks to connect to, iPhone will connect to the internet over EDGE. Connection speeds over EDGE will likely be somewhat slower than they would be over a Wi-Fi network. You will also not be able to answer phone calls while connected to the internet through EDGE. If the iPhone is connected to the internet over EDGE you will see this small icon at the top of your screen:
for more information you can go thru this link
http://support.apple.com/kb/ts2756
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