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It will sound similar to a speaker phone since it is basically that; a speaker phone. However, there are a few things you can try.
One is try it yourself and see if it is still hard to hear to the other person. Women (generally) talk quieter than a men, so the mic might have more of a problem picking up her voice compared to another person.

Two, some mics in early H3s (and could happen in later ones too), were positioned up to 120 degrees off from the way they were supposed to be installed.

The dealer can check this for you, or you can look up and see that the mic openings face where the drive is normally seated.
If it isn't, the dealer can fix or:

Carefully remove the mic bezel by pulling down.
Carefully pull the mic down and re-install to have the mic opening face the driver.
Sometimes, you might have to slightly lower that corner of the headliner, if so:

Remove the A-pillar molding (one screw behind small cover, then pull back on molding).
CAREFULLY, pull down the headliner just enough to get at the mic.

OR, it could be a bad mic. Very seldom do they go bad, but let's face it, man-made items can fail.