Wired has a great article up detailing the borderline relationship between Apple and AT&T, how both feel the other has failed them, and how both just can't leave.

The two corporations have argued about almost everything. Jobs has been apoplectic about the state of AT&T’s network and what he views as its slow-footed upgrade efforts almost since launch day three years ago. One Apple source says that Jobs has discussed dropping AT&T at least half a dozen times.

AT&T executives aren’t so crazy about Jobs, either. They complain that Apple hasn’t accepted its fair share of the blame. They say — and Apple sources confirm — that the software running the iPhone’s main radio, known as the baseband, was full of bugs and contributed to the much-decried dropped calls. What’s more, Apple had chosen to source the radio from Infineon, whose hardware was used widely in Europe but rarely in the US, where cell towers are placed farther apart and reception is therefore less forgiving.

There are lots of zingers, threats of escalating to Steve Jobs, threats of Jobs screaming at AT&T CEO de la Vega, and threats to go to Verizon. Scott Forstall and an Apple team reportedly examined the Verizon option from a technology point of view, and collaborated on that hybrid Qualcomm GSM/CDMA chip we heard about back during CES.

For their part, AT&T is spending billions, building out their network, while at the same time capping data and introducing tiers that seem comfortable now but will become a huge constraint as LTE/4G and wireless video and other data-heavy technologies take off.

Check out the full article via the link below. Well worth the read.