iPhone reception issue plagues O2 too!
It seems that AT&T isn't the only cell network struggling to control the iPhones heavy use. During an interview with the Financial Times, O2 head Ronan Dunne apologized to customers for the poor performance the network has been experiencing since the introduction of the iPhone 3GS to its air waves this summer. It seems that other networks around the words (Not just AT&T) are unable to manage the intense use of the data network experienced by iPhone users. I argue the case that AT&T's network is great but because the iPhone users use so much, it kills the system. I even argue if the iPhone was on say Verizon, that it would be the same as AT&T or possible even worse.
Dunne states:
Where we haven't met our own high standards then there's no question, we apologise to customers for that fact.
Also adding that the carrier had fixes at the ready and that the issues would be "more than addressed" shortly. I don't believe I have ever received an apology from AT&T but hopefully AT&T does the same and tries to fix their system as well.
-NM