Iphone wifi issue.

Hi, I have an iphone 3gs white 32 gb bought in india. I have issues with the wifi. the phone is able to connect to wifi but if locked for 2 minutes,it loses the cellular network as well as wifi and finds it again. Then the wifi is unable to locate the wifi signal but the cellular network comes back again. If i restart the phone then i can see the wifi but then again i can be connected to it till the time i dont lock it. what is the issue here? and can it be fixed? Is there a problem with the battery. Or this has to do with the modem firmware.
Note : 2 mins or max 5 mins after i lock my phone this happens. If i keep my phone unlocked for 10 hr connected to wifi, the wifi wont be lost. the phone stays connected. it seems when the phone gets locked, iphone tends to make wifi go to sleep to conserve battery but when unlocked the wifi goes out of sleep and connects again. My wifi after sleep doesnt connect. infact it doesnt locate the wifi signal and keeps searching with that circle rotating continuously.
Pls help. Restore done, reset done, updated, not jailbroken, out of warranty. Perfect condition.

Does it work on other wifi networks or on 3G because if not or if you Don't know then likely wifi is not the issue

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