I wrote a long piece early yesterday evening, but managed to lose that browser tab and am back to a blank box
It's not just how well something travels through objects, but equally as much, it's down to what is around to absorb signals.
Consider a microwave oven. Put in a glass plate and give it a blast for 30 seconds. Is it hot? (To be honest, I have not tried, but assume it won't be hot, or even warm.)
Microwave ovens work by transfer of energy into water molecules and similar constituent parts within food, and whilst I had believed they vibrated, I see from Wikipedia that it is not vibration so much as rotation.
Anyway, going back to mobile phones... Around the time of the introduction (early 90s) of Orange and one2one there was much discussion about the additional costs involved because the higher frequency would have a shorter {reliable} range (because of reflections / absorption) and therefore more 'cells' would be needed, bumping up the costs for setting up the networks.
Having more cells allows for more active phones, and if T-Mobile and Orange were not merging (which will force some changes in future years) then they could between them have had a larger market share than O2 + Vodafone simply on network capacity. Of course, the downside would be that if each of those active phones went on to be using the internet, their networks would be overloaded with data traffic, so either sluggish web browsing would occur, or they'd have to invest heavily to cope. Academic now, as the whole market will change over the next few years as the networks change and more get internet access via the mobile networks.
There was a deal between 3 and T-Mobile for sharing networks (allowing phone users access via either firm's masts) but that will be modified once T-M and Orange merge. So it is still worth looking at O2, for iPhone, if only because it should not change too much, too soon (if you start a 2 year contract with T-M or Orange or Three, who knows what will be happening by mid-2012 ?)
Setting up against established networks Vodafone and CellNet must have been quite a struggle for one2one as the first competitor, and they started with big cities and then motorways. Looks like phones will need to cover 3 to 5 bands for them to be international best sellers as the USA uses 850 and 1900, not 900 and 1800, and in the UK we are using 2100 MHz too, for Three and 3G.