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It is there because your location serivce is on (in settings). Turn off the Location serivce under 'Settings', 'Location'.
If you want the location service to be on but do not want to see the icon, switch off the notification from the status bar under 'Settings', 'Personalization', 'Status bar icons', uncheck 'Location'. Your phone will still obtain your location, but without informing you at the status bar. Do set the Location service to be 'Battery saving' mode before doing this because leaving it at 'High accuracy' mode(using GPS sensor) will drain off your battery.
What I would do is reinstall the latest update with PCC > use it like that for a day or so w/o installing any app from the playstore
Bridge (for Mac)
Alternatives on How to backup Xperias
http://talk.sonymobile.com/thread/36355