Reception problems with iPhone 3GS after upgrading to iOS 4.2.1

AFter upgrading to 4.2.1, my 3GS iPhone is experiencing bad signal, bad quality and frequent disconnections.
This was repeated even after my provider replaced my device to a different 3GS device, running 4.2.1.
inserting my SIM card to a NOKIA phone, showed strong signal and good reception.
Did anyone experience reception problems on 3GS running 4.2.1??
Thanks,

I have the same issue after iOS 4.2.1 update. I am using iPhone 3GS officially unlocked by Apple. I tried using different SIM cards and both carriers show same problem when using phone in 3G mode. Phone falls back to EDGE mode showing 'E' from '3G' at start. I have reset the phone and rebooted several times and moved to different cell areas in the city just to verify the problem.
I had no such issues earlier. I also have Nokia E71 which shows full signal and has no such issues.
I have posted the bug on apple iphone feedback page. I hope they Apple will fix the problem and test the release properly on all models before releasing to public.

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