"Phone" does not work, and I cannot send texts unless I have 3G on

iPhone 3GS, iOS 4
Anyone know why this is? I currently have a five bars of reception, can send/receive texts, and make calls. If I turn 3G OFF, I get 0 bars of reception. I cannot make calls, and if I try to send a text, it says message failed. The only way to fix this is to turn on 3G, and then reboot. If I just turn 3G back on (without rebooting).. the situation remains the same
Any idea how to fix this? Network = 02 UK
thanks

Hi cggturner,
I'm sorry to hear you are having issues with iOS 8.1. If you are still having issues with Caller ID and SMS Messaging, you may find the troubleshooting steps outlined in the following article helpful:
iOS: Troubleshooting Messages
Regards,
- Brendnen

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