AT&T executives aren’t so crazy about [Steve] Jobs, either. They complain that Apple hasn’t accepted its fair share of the blame. They say — and Apple sources confirm — that the software running the iPhone’s main radio, known as the baseband, was full of bugs and contributed to the much-decried dropped calls. What’s more, Apple had chosen to source the radio from Infineon, whose hardware was used widely in Europe but rarely in the US, where cell towers are placed farther apart and reception is therefore less forgiving.
--Fred Vogelstein, Wired, on why it might not be all AT&T's fault