Does the sound of your caller get reduced when you speak at the same time?

Hi everyone,
I'm noticing some strange behaviour of my iPhone 3G's audio on the O2 network here in the UK. Both O2 & the iPhone are new to me so I don't know which is the cause, but was wondering if anyone else has experienced this 'problem'? What happens is this:
When I'm on a call with my ear to the iPhone's earpiece (or using headphones) & I speak whilst the caller is speaking (or let's say I'm chatting to my wife in the same room as me whilst I'm listening to 'hold music'), I've noticed that *the volume & call-quality of the incoming line is often reduced*.
Initally this might not seem a problem, BUT, there have definitely been a view times when I've been in a noisy environment (such as street traffic, or my kids shouting & playing in the background) where I've missed things that the caller told me. In both these situations, I've noticed that the caller's voice has got quieter, sounded 'grainy' or even sometimes gone totally quiet until the sound from me (or my environment) has stopped. The 'problem' seems to right itself a minute or so of the call, but that's little consolation to the first 60 seconds of the call!
It's most noticeable on headphones by the way; As a test, I plugged in regular headphones to my iPhone (i.e. not the iPhone IEMs with the mic), called a landline phone-line with a pre-recorded message, then spoke into the iPhone's built-in microphone. Every time I did this, the incoming audio signal was 'turned down' &/or sounded gritty, then returns to normal when I (or my background noise) went quiet.
I don't think this is a fault with my phone. but more either an iPhone 3G hardware 'characteristic', v2 software bug, or network issue. (O2 said they've never heard of this before of course...)
If anyone else has the time to try this out please, I'd appreciate it
Thanks,
Jason

Hi Quickdraw,
Thanks for your reply.
I don't know this for sure, but I think it has EVERYTHING to do with bandwidth.
Yes, that makes a lot of sense... I was making calls on 2G/Edge at the time of my 'tests' rather than 3G, partly due to battery-saving but also that 2G still has much better coverage over here (just as you guys in the States seem to be experiencing).
I've done some more tryouts today, & noticed that if the 2G signal is really strong, OR if I switch to 3G & have a reasonable-to-good reception, the 'incoming-signal-dropping-out-when-I-talk' doesn't happen much at all...
So, the bandwidth thing does make sense, but it's interesting/annoying that it manifests itself as "one good-quality voice OR the other", rather than "full-duplex-but-not-so-great-for-both-voices" sound...
If anyone in the UK can feed back their experience with O2, I'd appreciate it please. (I never had this issue in the 10 years I was with Orange..)
Cheers,
Jason

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