Is AT&T's cell service truly as bad as I am experiencing?

I have been a Verizon cusomer for many years and actually paid the $175 cancellation fee to buy my iphone at the full list price before the drop. I am not upset about that, I share it only for disclosure purposes. What has me really curious/frustrated is the lack of service quality. (the phone coverage, not the people) I routinely drop calls or show a "no service" in the screen. I cannot remember the last time I dropped a call with Verizon! Yet, I lose one in five calls and the quality of the ones I keep, isn't that hot!
Is this a problem that is system wide? Or do I have bad phone? I have the 8 gig and plenty of free space... And the recent update...
Help!

AT&T coverage compared to Tmobile in LA/OC area is terrible. With Tmobile I never had dropped calls and I could hear the people I was calling loud and clear and vice versa. With AT&T I dropped many calls and every call I make is broken up, staticy, and it sounds like the person on the other end is talking in a cave.
I don't make a ton of calls with this phone and mainly use it for email, Internet, and iPod so it's not a huge problem for me.
However, I'm not convinced that the problem is entirely AT&T's network. I imagine some of these problems are with the hardware. My reasoning? Because I've had Sprint, Verizon, and Tmobile in the past. I've owned probably a dozen cell phones and some times the phones work awesome (so you assume it's the great network) but then you get a new phone and suddenly the 'service' is horrible. It has to be the phone. The only way I could decide for sure I guess would be to get another AT&T phone, swap my SIM card and use that phone for a while and see.

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