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We're both on Telus...she's of course HSPA and had 3 or 4 bars (I know, a relative signal strength) and I am on CDMA still though (with only 1 or 2 bars), maybe that was/is the issue.
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I think it's strange that the iPhone is showing full signal but not working.
I would be more inclined to think it's the network. I've had problems with my old pearl not receiving messages or sending them multiple times in the upper levels of the saddledome.