See? You are holding it wrong! There's no reception problem if you do it this way.
It's not a reception problem, it has to do with the software.
"The fix is expected to address a issue in iOS 4 related to radio frequency calibration of the baseband. Readers who saw the original forum discussions say that the issue is believed to occur when switching frequencies; because the lag is allegedly not calibrated correctly, it results in the device reporting "no service" rather than switching to the frequency with the best signal to noise ratio."
This story has been out for a while now. Yet instead we get these instead of the news of a fix on the way, and what was actually causing the problem?
Way to go, Gizmodo.