The iPhone supports the configuration of an HTTP proxy under the WiFi settings.

https://developer.apple.com/library/mac/#documentation/CoreFoundation/Reference/CFProxySupport/Reference/reference.html

There are indications that proxy support is enabled once authentication is processed:

http://lists.apple.com/archives/macnetworkprog/2011/Jun/msg00021.html

Since the ICEmobile container supports authentication, it may be possible to test this with the container and then add authentication support to ICEmobile-SX if successful. In any case, authentication support in ICEmobile-SX is desirable.

mediacast with ICEmobile-SX and the container have been verified against a squid proxy running on linux on port 3128. Both the container and ICEmobile-SX are picking up the system proxy settings and relaying all HTTP requests through the proxy.

The proxy was configured as follows:
Settings:Wi-Fi:<Network>:HTTP Proxy:Manual:Server:<server>,Port:3128

This is in contrast to the customer-reported problem with proxy interaction, so either an iOS update improved proxy support, additional network-related code in ICEmobile-SX improved proxy support, or there is a difference between the squid proxy and the customer-reported configuration.

Proxy interaction with ICEmobile-SX verified with 1.2.1 pre-submission build.