when phoning friends they cant hear me they say its sounds like im in a tunnel or really guiet

Are you using a phone case? If so, make sure nothing is covering any of the 3 microphones on your phone. the rear microphone is used for noise cancellation, so blocking that will cause the kind of affect you describe.

See:

http://support.apple.com/kb/ts5183

The microphone at the bottom left on an iPhone is the voice microphone for calls (when holding the iPhone to your face), but the other two are important as well for noise cancellation and setting levels for your voice, so if they are blocked, it will affect how others hear you.

For example, if the back microphone is completely blocked, it will act as if you are in a very quiet area, and will decrease the levels on the voice microphone drastically, making it sound like you are far away.

I have exactly the same issue !

When I cover microphone near camera they can hear me fine, when I dont cover it it basically lowers volume of my voice like I am the noise !

I tried to disable noise cancelling in accesibility but no help there.

I think I have found a solution ... just need to hold the phone closer to the ear so basically reduce what comes in to microphone in the earspeaker.. this helped me to get rid of the issue but I still think its seriously bad concept.