Users Report 3G Reception Issues, Analyst Says Blame The Chipset

Some iPhone 3G owners have been reporting unusually poor reception on their new devices. A thread on Apple's Discussion boards has been steadily gathering new posts of people citing unusually poor reception in circumstances that normally don't cause it. Specifically, users are reporting unusually frequent dropped calls on AT&T's network in the US.
One user wrote:
"I was driving down Folsom Street in San Francisco, and I got a dropped call 10 times. I get dropped calls just standing in one place," said Yarbrough, a 34-year-old accountant. "I'm extremely annoyed, but I'm hopeful a software update will fix it."
AT&T spokesman Mark Seigel says that they are currently looking into specific cases on an individual basis, but that they are not noticing an unusual number of dropped calls on the iPhone 3G specifically, and that overall the device is doing just fine.
"How a device performs in individual situations depends on circumstances like where you are in the 3G coverage, how close you are to a cell site. Things like terrain and buildings all come into play," Siegel said. "I'm not denying that people are having a less than satisfactory experience, but overall, the phone is doing great."
It should be noted that while these complaints do stand out to us as we see them on the Apple Discussion boards, it may not necessarily be an indication of a widespread problem, as judging the scope of the situation from a list of complaints is difficult.
One analyst suggests that, assuming the issue is widespread, the problem may be linked to the Infineon 3G chipset that Apple put in the iPhone 3G. Richard Windsor, an analyst with Nomura Securities, released a research note today in which he said “We believe that these issues are typical of an immature chipset and radio protocol stack where we are almost certain Infineon is the 3G supplier.” Still, no hard evidence that the problem is linked to hardware has been found.

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Issues In Denver
As I type this e-mail, my iphone "3g" is riding the "E" network. When I turn off and on my cell phone, the 3g symbol comes up briefly before defaulting back to the E symbol. I'm right smack dab in the middle of downtown, so I don't think it's a coverage issue.
I've had more dropped calls with this phone than the Gen. 1 iPhone. While I'm glad I'm not the only one having this issue (misery loves company), it sure doesn't justify the additional $10/month fee. If it's a chipset issue, then we're all out until the next hardware upgrade. If it's software, then get the patch out and move on.
Either way, Jobs isn't going to jeopardize his market position and future sales of this release with any kind of admission unless the media keeps at him/AT&T.
I'm curious if anyone will commence a class action lawsuit claiming the additional $10 fee is unreasonable in view of the promised 3g coverage area versus the actual 3g reception in these coverage zones. False advertising? It appears the issue is world wide. I know I bought my phone because it was supposed to be twice as fast. I don't recall them saying "twice as fast (if you're lucky)."
bad reception
Issues with 3G I phone
AT&T blames it on Apple and has no resolution other than to suggest turning off the 3G and apple says they have heard nothing about issues.
I love my original Iphone but will hold off on a new 3G until the reception issue has been resolved.
iphone 3g reception in Denver