From my house and my neighborhood I had NO SERVICE on my phone last night, and dropped some calls today. I have discovered that this is an international problem with the iPhone 3G. Although the AT&T site shows that my area has full 3G strength and moderate EDGE strength, it is just not true at least with the iPhione 3G.
Anyone else having issues with 3G or EDGE on the iPhone 3G?
Unfortunately I am not alone and the troubleshooting shows it is not AT&T since outside the US many have this issue
I have upgraded iTunes, upgraded my phone to 2.01 and restored it (necessary to complete the upgrade).
Went to the AT&T store today, where I got the phone on Friday afternoon and had 5 bars for both networks! One would think that this is an AT&T issue but it is more complicated than that...My opinion now is that there is an issue with how the phone interacts with 3G network towers, etc. Possibly authentication issues with certain towers also.
To see the huge range of experiences around the world check out this Apple thread:
http://discussions.apple.com/thread.jspa?messageID=7606244#7606244Hopefully Apple and AT&T (and other 3G networks around the globe) can figure this one out. Unfortunately this IPhone ( and MobileMe, and...) is one of those beta tests that the computer industry puts its customers through.
On positive note I seem to have 1 bar on 3G and 2 on edge tonight in my house, better than today. Hopefully this phone will be usable for me at my house

or I will have to take it back.