NO CARRIER - Phone only works in 3G mode, and periodically loses signal

Hi.
Recently my iPhone 3GS has stopped working on the 2G network and has become somewhat unstable on the 3G.
After traveling i found my phone rendered semi-defect.
After a travel through 2 countries my phone stopped working on 2G network.
to be able to connect to a "roaming" provider the phone had to be in 3G mode.
the 2G mode is now not working at all.
Once in a while the 3G also sets out, and i have to put the phone in flight mode and back to be able to get a connection to the carrier. (this could be caused by a non 3G zone i guess).
I have done the following steps to try and resolve the issue.
1) do a general network reset (no resolve)
2) do a general phone reset (no resolve)
3) do a iTunes restore, where the phone was updated, and blanked (no resolve)
continue and restore the previous backup (no resolve)
phone is running OS 3.1.3
I have tried the SIM card in another phone, and the 2G works fine on the carrier side, so i dont find the SIM defective.
somehow i thing the phone has totally flipped the 2G settings, and i dont know how to resolve it.
anyone?
Message was edited by: moosematic

The internet isn't the problem. The phone really only works when I am in Wi-Fi. The data is the issue. Yes I have tried all of these resets, lost all of info on the phone and I am very fed up. This has been going on ever since the wonderful roll out of ios7. When I 1st did the upgrade it deactivated the phone, I had to go to the store, luckily they were able to fix that. Ever since then though the phone is worthless. My question at this point is more related to this being a phone issue or a Verizon issue. I live in 80207 (denver) and work in 80202 (downtown Denver). I would really just like to know if this is a network issue here, or if Apple just ruiend a perfectly good phone to get me to "upgrade."
Is this a Verizon issue or Apple issue?

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