TS3694 phone does not hold a signal

My Iphone 4 does not hold its signal. This has been going on for a day and I have not dropped my Iphone recently. It says "searching" and than "no service" and than it shows bars for AT&T...This happens every time I look at the phone and also drops the calls when on the phone. My phone appears to be in great condition on the outside. What should I do?

Have you checked with AT&T to see if there is an outage in your area?

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