Apple said its software upgrade distributed on Monday for the iPhone 3G was in part expected to fix the problems with reception and dropped calls. Apple (NSDQ: AAPL) spokeswoman Jennifer Bowcock told USA Today on Tuesday: “The software update improves communication with 3G networks.” However, she did not elaborate beyond that. The dropped calls have been an issue for only some users, and typically when a call is being handed off from 3G to a slower network, like EDGE. Since the upgrade, a lot of people are reporting better service, but others are reporting new problems, like the inability to make phone calls or “bricked” or broken devices.

—MobileMe customers get another extension: On Monday, Apple also acknowledged ongoing problems with its syncing service MobileMe by issuing a free 60-day extension. The extension is in addition to the 30-day extension subscribers already received. Subscribers paid $99 for a year of service. “We have already made many improvements to MobileMe, but we still have many more to make,” Apple said in an e-mail to subscribers. “We know that MobileMe’s launch has not been our finest hour.”

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