3G no longer works on iPhone 3GS

Question

I have had my iPhone 3GS for about a year and have had no problems. When I upgraded to iOS 4.1 a few months ago, I began having problems connecting to the 3G network. When I have 3G active (from the settings panel) I have little to no connectivity (texts send only about 10% of the time, calls usually fail, and I often hear only electronic giberish when I make a call).
When I disable 3G, the EDGE network works just fine, and WiFi works either way. I tried calling AT&T and they said it was a problem with the telephone, and when I called Apple they said I needed to pay $29 to even begin diagnosing the problem.
I don't think I should have to pay to fix a problem introduced by their update. Anyone have a solution to this problem? A solution other than canceling my account and buying a blackberry from Verizon, that is, which is where I'm leaning.

Answer 1

I have the same issue. My 3Gs worked fine until about 6 months ago and it got progressively worse. Edge works fine but when it comes to 3G sometimes it works and a lot of times it does not work, and there does not seem to be a pattern to it at all. It even sometimes reads full bars on 3G but if you try to access anything it has no internet connectivity. If you try to make a call it just fails.
I have reset my whole phone undated all the software on the phone and iTunes. I used my SIM card with a friends 3GS phone and it worked fine. Called tech help for Rogers and they could not narrow it down but they thought it was a problem with the towers. But based on process of elimination its the phone my guess is the software of the 3G antenna. Unless someone has a solution (and it does not seem like it by reading these forums) there is no other solution other then get a new phone.