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I have a 16 GB iPhone 3GS. The phone is dropping the network sporadically. I am in a metro area that should have full coverage. I know I should have service, because I can sit right next to someone with a 3GS that has full bars, while I am "searching...". I'll go hours with no messages, then I'll get dozens of texts/emails/voicemails all at once. Apple Store said to take it to ATT, I did. They gave me a new SIM card. I've done this twice. When the phone isn't working (I'm assuming it has something to do with the network or antenna), I try to restart the network settings and then do a hard reset (home button+power button). About 30% of the time this works. I have done a DFU restore and that did not make a difference. I can't figure out what to do with it. I'm trying to hold out until the next iPhone comes out. What can I do to fix this issue or who should I contact that might actually help?

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Sounds like you need a whole new iPhone :( Did you buy AppleCare? – spudwaffle Aug 15 '11 at 17:10
The phone is out of warranty :( – dpollitt Aug 15 '11 at 18:22
Like @spudwaffle says, it sounds like your phone is broken. See if Apple will swap it out even out of warranty, or for a small fee. I remember reading something about a $200 pay-in for a 3GS replacement, but I don't recall where. – Randolph West Aug 16 '11 at 2:01
Result - I gave up on the phone, and got a new one. Apple genius told me it was helpless, and they would just charge me $200 to refurbish mine basically. – dpollitt Aug 19 '11 at 21:05

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