For quite some time now AT&T customers have been griping about poor coverage with the iPhone on AT&T’s network, and apparently AT&T execs have been working with Apple with a view to solving the problems reports an article over on Cnet.

We all know about iPhone customers complaining about slow data connections and dropped calls, particularly in urban areas like San Francisco and New York with the complaints rolling in since the iPhone first appeared.

The hot rumour at the moment is that Apple is working on a CDMA iPhone for the Verizon network who happen to be AT&T’s biggest rival; apparently AT&T is coaching Apple on improving network communication.

Sources have told the WSJ that Apple is working on a CDMA iPhone: however the article does report that production of a CDMA iPhone won’t start until September. AT&T has upgraded their network to HSPA 7.2 which is faster than Verizon’s EV-DO 3G network.

Eventually AT&T’s exclusivity over the iPhone will end and should that coincide with the Verizon iPhone release later in the year, AT&T would have roughly 6 months to improve coverage in the hopes to slow defection of customers.