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Because you said you have a dial tone I'm guessing that this is a land line (home) telephone. Make sure that the ringer volume is turned up. You may have to search for it but it is located somewhere on the phone. Plug another phone into the same jack and if this unit work replace your phone(very cheap). Still not working then you may have a defective phone cable which must be replaced.
My phone does this as well. Just because it shows service doesnt mean it has service. If you are in an area that has spotty service trying going to a place you know to have perfect service and try again. If the problem persists call ATT and they should help you through the problem.
Hello Justme12345, I worked in the Cellular industry, and will have to say yes. I have unlocked phones from both providers and they will work either way once unlocked. You can search for unlocking software and do it yourself, or find a local shop that will unlock it for you for a nominal fee. Good luck.
Surely you have had it for less than a year. Call your local support agent by dialing *611(verizon) or whatever number you use to access your customer support, tell them that the radio in the phone is defective and drops calls. Request them to warranty the phone by manufacturer. They will send you a new one in a box with return instructions. Fill out any information and ship your phone back. Before you do so there may be an agent of your wireless carrier in the area. Visit the store to have information transferred to your new phone.