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It's probably the phone's way of showing me there is no WIFI connection. Is that it? Probably not since that would probably be a "no icon" thing.

Anyway, couldn't find it in the user's manual so here you go... question asked.

Thx

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The circle indicates that you're on the cellular GPRS data network. The fact that it's visible also means that you don't have a wifi connection:

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Awesome Kyle, thanx! –  tzup Jul 19 '10 at 9:16
    
3G/3GS/4’s show a “E” instead of that, to indicate that they are on “E”dge network. –  Martín Marconcini Dec 2 '10 at 1:48
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@Martin: those newer models also show the circle if they are on plain GPRS without EDGE. –  Ortwin Gentz Jan 23 '11 at 12:52
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