Yes the o is gprs.
Restore is quite terminal in that you will go back to box fresh settings and will also lose any apps you have installed.
Opinion is quite divided on the latest i phone sadly the uk network does not fully support the 3g functionality, in fact ofcom have taken o2 to task over there lack of developement of 3g infrastructure.
I used to advise all customers to disable dual mode function and revert to gsm only, this applies to all handsets, and actually works with other networks, especially my own pet hate the N series.....
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