Problems with iPhone 3g chip?

Hello
Ok so here's the deal. We got a 3g tower put up near where I live. The morning it was in use I was able to use 3g for about 30 minutes flawlessly. Since then 3g will not hold a signal and drops down to edge when I load a webpage. I have all 5 bars on 3g and edge. I called the nearest att store and I asked where the tower was located and it's about 3 miles away from me. But it still refuses to stay on 3g for more than a couple minutes. The only way I can get back on 3g is by going to airplane mode and then turning it off, or by turning the phone off.
Today at school a friend has a motorola razr and was able to use 3g and his never went to edge network. The school I go to is about 15 miles from school.
So long story short is there something wrong with the 3g chip or something?

Don't confuse cell tower spacing with range. Spacing is generally 1 to 2 miles (some times as close as a quarter of a mile) to deal with high density of users located in a given area (because each tower can handle a finite number of calls at one time), and also to accommodate talking while driving. Also not all those towers belong to the same carrier.
Cell Range is in the neighborhood of 25 miles for GSM and up to 45 miles for CDMA (which the iPhone does not use).
If the OP is within 3 miles he is absolutely in the sweet spot of reception from that tower.

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