Your router broadcasts on a specific channel (1-13), and your iphone will only use the channel that is broadcasting. Reasons for channels are to reduce interference from routers. Ideally, you want to select a channel that is not in use. The channels themselves overlap, although, for example, channel 7 will still work with channels +/- 5 channels.
There are several applications that you can download that will show you all the access points that it can find, and which channel they are broadcasting. This will help you find the best channel to use.
Basically, what I'm saying is that your iPhone cannot select the channel on which your router is broadcasting.
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