My IPhone 3GS Won't Stay Connected to 3G

Hello IPhone World!!!
I have an IPhone 3GS. Recently I have found that my phone will not stay connected to 3G. I'll make a call with it in 3G mode and after a few mintues, the call drops and there is a "No Service" indicator on the display. If I switch it off (back to 2G) the signal comes back. When attempting to enable 3G, the No Service message returns on the display. The only way I can temporarly restore 3G is to turn on and off the Airplane Settings. However, after trying to place a call, the 3G signal dissappears and the call is dropped again.
I've spoken to my wireless provider and was assured that there are no problems with the network and have verified the same with friends who also have a fully functioning 3G device.
The warranty on the phone has run out and I am not yet eligible to upgrade to an IPhone 4. Please help!!
p.s. I have NEVER jailbreaked my phone.

I would try a reset or a restore first. Also, chances are that you paid for your phone using a credit card. Most credit cards give buyer an extra year of warranty protection. If you paid with a credit card and the purchase date is less than two years, call your credit card company and ask if they can pay for the repair.

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