GSM iPhone 4 Static for voice calls

iPhone 4
iOS 4.3.1 update
Today I am getting a lot of static when trying to make voice calls and people having issues with receiving or hearing my calls. I have tried a restore from backup and even a complete restore from a fresh 4.3.1 update. I have cycled the phone on and off, turned off 3g, switched it to airplane mode, and tried the phone from several different areas in a 20 mile radius. I suspect it could be a hardware issue and not software?

IF you did a complete restore then obviously it is not a software issue. That leaves, hardware as you suspect and the network. I would contact your carrier to see if they are aware of any issues in your area with call clarity.
Otherwise the iPhone 4 will still be covered under warranty.

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