Ever since I upgraded my iPhone 3G to OS 3.1.2, the phone has network and reception issues. The phone goes into "searching" mode at random times and won't come out of it unless I either reboot, or turn on airplane mode and off to connect back to my carrier network. While in "searching" mode, no calls, voice mails, sms or anything comes through, so it really does seem disconnected from the network.
There have no geographical changes (my home and office are in the same place as when I had OS 3.0).
Was responding to someone in Washington D.C. who had no problems until the upgrade. In St. Louis it may be a different situation. Just got an email today from AT&T about their cutover to the new frequency and higher speed.
I had to talk to AT&T customer service about a significant overage on my family plan minutes. They could not have been nicer or more helpful.
Even though I was on 3.1.2, my modem firmware (in the iPhone "about" screen) version was 5.09 or less. I manually updated the phone using an Apple downloaded file of 3.1.2 firmware (as opposed to trusting iTunes).
This upgraded the modem firmware to the latest 5.11.07. It now does not go into "searching" any more, but it does go to "no service" instead. Not as frequent as before, but more like once or twice daily. (definitely loses connection over night time).
Please keep backup in safe place before updating the phone.
I found there could be the problem with iTunes which you installed.
Once you updated the firmware it should be imediately updated in ABOUT screen.
Do one thing uninstall the iTunes and reinstall it again. The next step is to Authorize the pc for updates from APPLE. Once authorization is done then plugin the phone, it will sho you that phone is sync. with other library, Say yes to sync with new authorized system.
Then try to update the firmware. It should work now.
NOTE: Please make sure you have taken the phone backup before updation.