I have an iPhone 4 and have noticed no reception issues of any kind, even with holding the sides. But my mother's phone seems to report reception very strangely - if you leave the phone in one place, not even holding it, the bars are all over the place, anywhere from no bars to 4 bars. It does show a change in reception with holding the sides. Putting a case on it seemed to help that, but not the overall reception problem. Mine in the same place did not seem to do that, although to be fair, I didn't test it extensively. At times, she will have no bars (but not "no service", but still be able to send/receive texts and even make a phone call, but at other times, if you call the phone it goes to voicemail as if it's somewhere with no reception. Non iPhones at my parents' house work fine, but they live in an area that doesn't get terrific reception, and phones will sometimes show 3G, sometimes EDGE there, so I think they seem to be on the outskirts of 3G coverage in our town. From what I have read about the reception problems, they seem to be more noticeable in areas where the AT&T signal is not the strongest, so perhaps that applies here. I am hoping this will be fixed with the rumored software update, but I was wondering if anyone else is noticing reception problems that are not only due to how the phone is held.