Its a Hardware issue.. It is interference from faulty design or Cheap components. You can not fix Signal interference through software update. That's what is going on in most cases.
You can tell Signal interference from any other static because of its constant Pulses, or ticking, if you will. It has been a while since I initially posted about this problem but have Since did quite a bit of Troubleshooting and have determined it is Signal Interference from the CELLULAR DATA Transmissions to the Network. Similar to the GSM interference you get though external speakers that your phone is sitting close to when you receive a call.
Now this is not a GSM problem in this case as it reaches all carriers, but is an example for people who know that sound. It has a different pattern than the Usual GSM interference we are all used to because it is DATA Transmission and not strictly VOICE transmission, So there is a slightly different ticking sound which caused me to misdiagnose the problem as being interference from the processor or other component inside the phone.
For one, it is annoying, but is not to the extreme as some people are posting on here. I think there are people experiencing something far worse than the problem that this post was intended for. In that case, I'm sure a replacement phone will fix those issues.
But for the light ticking, it is just a DATA Transmission interference in the handset earpiece Speaker, and as someone mentioned above, does not show up when Cellular Data is Turned OFF on the phone.
This interference is not reaching the Loud speaker or speaker phone speaker, or in the headset. If it is, then there is another problem than that mentioned in this forum.
I agree it is annoying and disappointing to say the Least, But maybe in 6 months or so when the suppliers exhaust their inventory of the faulty components or Apple fixes the problem, it will disappear.
I had an iPhone 4 from the First batch and the Proximity sensors in those first phones were not working correctly and the Home button stopped working half of the time. I got a replacement a few months before my warranty was up so I could get the latest Batch of phones and It worked Great.
Just Hoping this will be the same situation!
But for the people Always waiting for a SOFTWARE Patch to fix Hardware issues, such as, Death Grip - iP4, Battery - iP4S, Proximity Sensor - iP4, (All these were addressed with a Software Patch that might have fixed 1% of the phones but no one I ever knew.)
keep waiting because it is Impossible, Apple updates are like a Placebo, it makes people feel better but doesn't actually fix anything.