New phone, does not receive 2G EDGE signals, only ...

Hi all, 
Just bought the nokia 800 a couple of days ago and already ran into a major problem: my phone only works on 3g HSPA, if the 3g signal becomes very low as is usual for my area, it sits there with no service at all instead of switching to 2g. Other phones get full 2g signals on the same network sitting right beside it.
1. I've already tried to reset the phone which i hated after all the logins in different apps.
2. tried ringing it from another phone (as suggested online) but no luck
3. tried changing the highest connection speed under mobile network settings to 2g (E) only, but then it neither gets 2g nor 3g signals (no service).
4. tried different sim cards but its the same.
5. tried making a call but as expected- nothing.
There are no updates available at the moment for my phone.
Can anybody throw some light on this? I've come across threads with no service problems but not anything with this particular issue.
Thank you.

Hi
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