Cannot detect wifi networks

My iPhone4 suddenly stopped identifying wifi networks to connect to. I know they are available because I can connect with my iPad. Support have been most helpful telling me I have to pay $250 to fix it. Can anyone tell me why this has happened and how it can be fixed without so much expense? Or do I just buy a Samsung Galaxy?????

I got my iPad 2 only just over a week ago, and it was working perfectly to my knowledge, and I was quite happy with it.
However, all of a sudden it stopped recognising my home's wifi router on Saturday evening, and this morning it stopped using my phone's (Nokia N8, EZ Spot app) wifi hotspot. So it's not a problem with my router.
By this I mean it can connect fine (according to settings) and even have notifications from apps pop up. (So-and-so commented on, from Facebook, update available on appstore for whatever app, etc.)
But… when I try to use the internet connection (at full bars) to access the app, like Safari, AppStore, or anything, nothing happens.
Interestingly, when I looked at my phone's app, it told me it had a couple of kb data under uploaded, but no wifi data had been downloaded by the iPad.
I've followed all the steps on the support website, but to no avail.
What can I do to fix this? Any help would be greatly appreciated. Thanks.

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