Service drifts in and out

I have had my iphone for 2 weeks. I noticed I would have service on the phone with all the bars (I live only 1/2 mile from tower). Then I would look at the phone and see the message "no service" at the top of the screen. I called apple and after several troubleshooting steps over a 3 day period they told me to take the phone back to the apple store. I got a new phone on Saturday and am still having the same problem with reception. From all the bars to no service and back and forth. Seems the problem is not on the phone until the phone has been on for several hours. I have calls come into the phone with a voice mail but no call registered on the recent call list. Apple has esclated the problem up to a senior product specialist. ATT has finally come on board with the problem after the apple senior product specialist got involved. I am now providing info to an ATT engineer who has lots of question about location and times of missed calls.
Is anyone else having this type of problem?
I am having very short battery life with this phone - figure it is because of the phone always looking for the tower.

I have the same problem. And here's the kicker, my wife has a first generation iPhone. Here phone always has reception up here in Maine. So I turned off G3 and I still get no service. I might get it for a minute or two, then it drops it and No Service returns. I can hold her phone with full service right next to my phone, only mine reads No Service. I even went to my account to make sure the bill was paid. ATT said the phone was "active." Not. Certainly not an ATT problem however.

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