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Data Connectivity Issue on Wildfire

I have recently purchased HTC Wildfire which is running Android 2.2 Froyo.

I noticed following issue-
When WiFi is off, it obviously uses mobile network for data.
My carrier is 3G.

So at times, H (HSDPA) connection is lost, or E (EDGE if 3G network is not available) is lost.

Then I go to Settings > Wireless and Network. There under Mobile Network, it shows Connection Failed. When this happens, I can't use any internet based application.
I tap Mobile Network option, it says connecting but finally says Connection Failed.
I also try switching WCDMA to GSM or vice verca. But it does not catch H or E for some time.

Later it restores connection.
My carrier is very good and I was not experiencing such data connection drop on my previous Nokia phone.

So why this problem is occurring ?
I doubt if its Hardware problem.
So is it a software/Android problem ?
Or simply issue due to network problem ?
Please guys help me out.
Thanks.
 
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