IssueTracker

I have same issue, but in addition many a time, when I switch on Bluetooth, the WiFi connection drops.

There is in fact an issue with wifi on the Nexus 4.  I've written it up here:

http://things-linux.blogspot.com/2013/01/do-not-write-on-board.html

Thanks... but that is not the same issue...  I can leave wifi on all the time and it will never drop connection.  Even when screen blanks out.  The wifi will only drop when I turn on bluetooth.

The issue with bluetooth killing wifi is a known Android 4.2.1 issue.  Whether or not it is related to other wifi issues has yet to be determined, since the cause of the wifi bug has not been made public.  I have also seen the bluetooth killing wifi bug on My Nexus 4, all I have to do is turn on my paired Plantronics headset.

And for clarity, my wifi doesn't "drop" either.  But after the screen has been blanked for about a minute, it stops communicating.  A simple ping test to your N4 can verify this.  If you turn the screen back on you still see the wifi icon, but it will be greyed out. After a few seconds with the screen on, it will turn blue again (and ping will again reach your device).

Yeah, I had a discussion with a level 2 Google Play support rep.  They said they are aware of the issue and to please be patient for an update.  I think we need to make this more publicly known so that they get on top of it...

My wifi icon is always blue (when bluetooth isn't on, that is)... even after the screen's been off for quite some time and then turn back on.  Still blue...

Thanks for the update.  How did you get to discuss this with a level 2 rep?  Did you call Google Device support and escalate?

After a long discussion of "It must be your router..." or "It must be your bluetooth device..." or "you must have installed some app that's causing that..." or "those radios have nothing to do with each other..."  I proved to the first rep that my router + bluetooth device doesn't have any problems on my Nexus 7.  Then explained that I can get the same results on both Nexus 4 (dropped wifi) and Nexus 7 (perfectly working wifi) at multiple router locations - not just mine.  I then proceeded to uninstall every downloadable app... still the same problem...  I then reset my phone to factory settings... still the same problem... then I booted my phone in safe mode... still the same problem.  She was stumped... it was clearly a Nexus 4 issue as no outside force was causing this issue.

It took all that running around to present my case to a level two.  And of course... level two knew about it and said be patient...

Figures.  I've done essentially the same thing trying to track down the wifi sleeping problem.  I've RMA'd two Nexus 4's, and the third one has the identical problem as the other two. It's about time for me to call them back again.

Level one said I could do a warranty replacement, but if they don't find my issue, they would charge me full price for the new Nexus.  Didn't want to risk it...  Just send the update!!!