IPhone 4 Phone Call Issues

About a week ago I noticed my iphone 4 (updated IOS) was having issues with phone calls.  I would make a call to someone and mid-call they could no longer hear me.  In other cases, I made a call to someone and they never could hear me at all.  Other cases, someone calls me and they cannot hear me.  Finally ther are cases where I call someone and mid-call there is a bunch of static and they cannot hear me.
I spoke with Apple and they told me that I needed to restore the phone and install it as a new iPhone.  This should deal with the issue.  I did such steps and then synced the phone and tried to make a call.  The first three calls nobody could hear me.  The next call they could hear me for 2 minutes and then static and nothing.
I have had a new SIM card installed and have reset the network as well.  In reading the Apple Support Community postings, it looks like the only long term solution is to acquire a new phone.  Is there any other solution anyone knows of to help remedy this situation.  I have had the iPhone 4 for 2 years without an issue and in the last week, this crops up.  It has not been in water, it has a case on it, I am not covering up the mics, the speaker phone is off. 
Next to getting a new phone, any ideas?

There is nothing to sort out.
Basic troubleshooting from the User's Guide is reset, restart, restore (first from backup then as new).  Try each of these in order until the issue is resolved.
If the issue still occurs, take the device to Apple for evaluation as there is obviously a hardware issue.

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