You clearly did not understand. I am using the *same* iphone on two Australian networks. On my main service (optus) which is saturated, I often lose data access. On the unsaturated, fully built out network (Telstra) I do not get any issues at all, but fast connections/downloads and never lose a call. I would use them all the time if they were not such price gougers.
Problems on one network (the saturated one), no problems on another (not saturated).
Therefore, my bet is that in the USA it is a network issue, not the iphone hardware.
Except it isn't a land mass issue to be having dropped calls on one network and not on another (competing networks are in the same land mass after all). In Australia Optus=dropped calls while telstra = high performance (and poverty if you use it

)
It is a network capacity issue. I bet in Britain O2 has dropped calls and orange may not.
The only relevance of land mass it is that it would obviously cost a lot more to build out a network in bigger, geographically dispersed countries like the US. But then again you have the population to spread the cost.
Yes but Australia has such a large concentration of total population in just a few cities so it is easier, cheaper & quicker to provide services to the majority of the population than in the USA where you have a large number of very big cities, let alone 15-20 times the total population with a large land mass, masses of interstates criss crossing the country and all sorts of other issues. AT&T can only invest so much money per year on the network as they ony have so many people who can do the upgrades, even when calling in 3rd parties to help.
It would be interesting to see how many towers AT&T has in the USA, of course we seem to be ignoring the fact that getting cell towers installed is generally an epic pain in the butt as the NIMBY's run riot when one is planned but they are also the same ones complaining about crappy service.
If you compare Australia to the USA, look at the concentration of population, the relatively small number of major highways etc etc, I don't think AT&T is doing that bad, not saying they are doing great, but even if they can throw all the $$ in the world at the problem they can only do so much per year.
As to the question of is it the network or is it the device?
- AT&T will not throw Apple under the bus as they are the exclusive provider in the USA and with this up for review next year they aren't likely to do anything to hurt this agreement.
- Apple will not throw AT&T under the bus as they don't want their only US provider to stop selling their phones or promote other devices instead of the iPhone.
- AT&T seems to only have serious issues in a few locations, mainly 2 high density, high population areas, one with potentially challenging geography for 3G/GSM singals and the other with a challenging layout (tall buildings) for 3G/GSM signals.
- Either iPhone users complain the loudest or the other users of 3G smartphones on the AT&T network don't seem to be having the same level of issues with coverage.
Seems to be a 2-2 tie here, and to be honest, I don't think either party is really going to be willing to dump on the other unless their is some bad divorce and in which case one or the other would be willing to tell all at some point in the future.
Edit: I grew up in Sydney (24 years), I live in Denver (10 years). iPhone 3Gs owner.