If you notice that the signal from your Apple Airport Extreme or your Time Capsule has suddenly got weaker, it's not a hardware failure but very likely interference from neighbouring devices. I switched from a Linksys router to an Airport Extreme about a year ago and the signal strength has been superb. I get great wireless access throughout three floors.However, recently the signal strength on my Airport Extreme has been getting weaker and suddenly to the point where the signal was being dropped regularly. At first I thought it was my MacBook Pro overheating but I tested the wireless on my iMac which is normally wired and it too had almost no connectivity. I changed the wireless (WPA/WPA2) password, which is always a good thing, thinking that someone had tapped into my network. I also re-cycled the power on the Airport Extreme but that did not help.
Finally, I searched for similarly related issues on the Apple Support Forum other users were having. Many users attributed it to the Airport Extreme being sub quality hardware. But at the end of the day, the Airport Extreme is a wireless router and it has to broadcast a signal. So it made me think about potential interference as I noticed a sudden increase in the list of wireless networks in my neighboured. Using the Airport Utility App in the Applications | Utilities folder I changed the Radio Channel Selection as follows:
- Double click on the Airport Utility.app.
- Select your Airport Extreme (AE) to the left of the Airport Utility window.
- Click on the 'Manual Setup' button at the bottom of the window.
- Click on the 'Wireless' tab to display the wireless settings of your Airport Extreme.
- Change the 'Radio Channel Selection' option to 'Manual'.
- Click on the 'Edit' button which displays the different channels.
- If you have the current version of the Airport Extreme it has two channels, the 2.4 GHz Channel for devices like your iPhone and 802.11b/g Macs and the 5 GHz Channel for devices like the newer Mac using 802.11n.
- If you have an older Mac with 802.11b/g change the 2.4 Ghz Channel from 'Automatic' to one of the larger numbers like 10-15.
- Click the 'Done' and then the 'Update' buttons to reboot your Airport Extreme.

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