I want to download the iOS 7.1.1 for the iPhone 4. It says I need 3.8 GB of storage to download. If I make space on my iPhone for the download, once downloaded, will it take up the 3.8 GB of space needed on the iPhone and will I lose that space?

I understand that the new iOS is only 1.1GB, but I don't understand why I need at least 3.8GB of free space on my iPhone to download the new software. I also don't want to lose space on my iPhone from downloading the new software, because 3.8GB is a lot of precious space.
Cheers guys, I would appreciate it if anyone could help me out.

The 3.8 GB is needed to create space for the installation process and saving your data.  In the end 7.1.1 replaces the existing iOS and doesn't take up much more space on the phone.
If you lack the download space requirements, update by using iTunes, not over the air.
iOS: How to update your iPhone, iPad, or iPod touch

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