Just a quick update on this topic for anyone who may stumble on this page with the same problem.
ALL AT&T cell phones are supposed to be able to initiate 5-way conference calls. Even though AT&T and other providers commonly refer to this feature as "3-way calling" (a throw back to the 1980's when the feature was first introduced for home phones), all AT&T plans support multi-party calling with up to 5 lines. If your iPhone is not able to do this, and if your battery begins to run down too quickly, it's the SIM card. Go to the AT&T store and get a new one.
If they try to charge you for it, prove to them it's defective by having them try a new one in your phone, or by taking your SIM card and putting it into another phone. Feel free to direct them to my previous post about this, or to print it off and take it with you. It's here: http://macshine.blogspot.com/2009/08/conference-call-problem.html
Now that I got a new SIM card I am happily hosting 4-way conference calls again, and only recharging my phone at night (instead of 3-4 times a day).
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