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I've been having ongoing issues where I've noticed the small "o" (indicating 1xRTT or 2G mode) next to the carrier name in place of 3G. Speedtest checks verify low data transmission speeds(.05 Mbps) and this is confirmed by slow loading of map pages, websites, etc. Toggling airplane mode and restarting the phone typically do nothing. Updating the PRL tends to help as well as reseting the network settings. I'm of the opinion I shouldn't have to update the PRL and reset network settings as frequently as I've been needing to (that is, every few days or a week at a time). I've been on Verizon's network with several different devices over the last five years in the same part of the world (Portland, Oregon) and have never had these kinds of issues. I'm hesitant to condemn the hardware of the iPhone as it works great when it's connecting properly. Hardware issues would typically be consistent and not be corrected by software remedies. I have yet to restore the software as new because I have some app data I'm not interested in losing and I don't see the benefit of doing so. I have contacted Verizon but they mostly pointed me back to Apple who will most likely point me to Verizon. Before I play that game, I'm wondering if anyone else has experienced this and what (if) they found to fix the issue. I would appreciate responses only from those that have read the entire post. Thanks!
I don't have a Verizon phone, but I do have a Verizon 4G/LTE hotspot. I've noticed that as Verizon deploys its 4G network they are reducing 3G EVDO coverage, so if you can't get a 4G connection it falls back to 1xRTT. This may be what you are seeing, as the iPhone 4S does not support LTE.
Is this in all areas around Portland or just in one particular area? Before doing anything else try it in a location that you recall having a good signal several miles away from the current location. If you get the same result you will need to get the phone serviced.
I've always had mostly great coverage thoughout Portland and never 2G service. There's no specific area it occurs but it does seem when mostly around my home areas I don't seem to have an issue. What gets me is I've regularly used--and monitored--at least 7 different devices of different manufacturers around the whole Portland area over the last years and have always had great coverage and never 2G data. Still hesitant to say it is the phone because it does work lost of the time and there's just nothing that tells me it's hardware related.
If it works most of the time it is not the phone. As Lawrence pointed out above Verizon is busily updating their network. It may be a problem/work on a particular cell repeater that is causing the issue.
Here's a tip: Dial *228 to update your location. This will point you to the nearest cell tower and may fix your problem.

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