I would like to say what a relief it is to see so many people posting the exact same problem I have been experiencing. I was using a 3GS for almost 3 years and it worked flawlessly. I upgraded a couple of weeks ago on my 3 year with a local carrier in Toronto (same as my 3Gs) with the Iphone5 and I purchased the apple care warranty for an extra $99. During the first couple of days I surpassed the 30 minute talk time the carrier limits you to return the phone. In 30 minutes, how can you tell if this is your phone or someone else's problem? Needless to say I didn't use the phone very much the first few days for calls, mostly the apps etc. After a few days and calls people began telling me I sounded muffled and asked if I was covering the mouth piece or moving away from the phone. Everyone sounds like a robot, it's full of static, choppy and people fade in and out. This is occuring on my end and the other end of the call. I have tested several calls, local, long distance, to android to landlines to other Iphone 5's. All the same. Turning LTE off and wi-fi makes no difference.
I swapped 2 phones with Apple (by the way the phone was just under 2 weeks old, I bought $ applecare early on and they gave me 2 refurbished phones as replacements both times). I even changed a sim card. I'm on my third phone now, all the same problems. I have visited 2 local Toronto stores and I spoke with managers, nobody will confirm they have heard of this problem. (The guy who posted earlier on this forum that was with Telus, I'd ike to know which Toronto store you reported this issue to and told you they have not had any reports). Anyway, I brought a print out of the posts here and they didn't even read it. They try to do a call 'test' in a noisy store where you can't hear yourself think let alone try to test a phone call. Someone was supposed to get back to me a week ago (the techs at one of the stores), needless to say nobody has made any attempt to get back to me. The carrier blames Apple and Apple blames the carrier. They look at you as if you are reporting an alien siting, as if this can't be true. Pfffffffffft!
What is a customer to do? This is unacceptable. I have an ipod and this is not a phone. I do not want to make or receive any calls on the phone because it is too painful to try to have a conversation longer than a couple of minutes. I will have no choice but to sell and move to android if Apple does not acknowledge this problem I will never buy another Apple product again.
Very disappointed customer!