Some lay the blame at AT&T's feet. In a side-by-side test, I've seen the 3G iPhone get no coverage, and other devices get full 3G coverage. It was never AT&T's fault, as far as I am concerned. Since the problem has been experienced by users around the world, the fault clearly lays with the device.
According to a report from Business Week, Apple is working to fix the problem. But just what is the problem? Well, BW says that the problem resides in the coding that supports the 3G iPhone's Infineon chipset -- the chip that provides the 3G part of the phone. BW's sources say that a firmware update that takes care of the coding problem should be enough to fix the reception issues that are being experienced by many.
Whether Apple or Infineon is to blame for the iPhone's poor reception issues, the issue needs to be resolved. Sooner rather than later. The sources indicate that the firmware update will be available in September. Right now, that feels like it's a long way off.