AT&T and Apple are reportedly working on a software fix to correct the iPhone 3G connection failures that users worldwide are rampantly complaining about. According to USA Today, citing anonymous sources, the problem lies with a faulty chipset provided by German chip company Infineon Technologies. Users are complaining about connection failures that typically happen when the device tries to move from AT&T's 3G network to the EDGE network. The software fix could be available next week via iTunes.

For more:
- see USA Today [1]

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Are design flaws plaguing the iPhone 3G? iPhone editorial [1]
Apple iPhone less stable than Windows Mobile. iPhone story [2]