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April 22, 2009

Report: iPhone-Reliant AT&T to Boost 3G Capacity



By Michael Dinan, TMCnet Editor


Sensing what industry experts already know about their dependence on the Apple iPhone, officials at AT&T reportedly are in the process of doubling the capacity of their 3G networks.

 
According to this article by Kevin Fitchard of Telephony Online – a publication of Chicago’s Penton Media Inc. –  the telecom giant is using software to boost bandwidth from as it migrates to more 3G and eventually 4G networks.
 
Fitchard quotes AT&T (News - Alert) Mobility’s vice president of technology realization, Scott McElroy, as saying that the company is increasing the downlink capacity on its high-speed packet access from 3.6 megabits per second to 7.2 Mb/s through software upgrades at the base station.
 
“AT&T currently has the enhanced networks running in two test markets but plans to extend those capabilities to its entire network,” Fitchard reports. “Later this year, AT&T plans to start migrating its 3G networks to evolved-HSPA (or HSPA+), which would triple peak speeds.”
 
The news comes as AT&T reports revenues of nearly $30.6 billion, down less than 1 percent despite a 12 percent jump in profits in its wireless division.
 
As TMC (News - Alert) President Rich Tehrani writes here, that bit of positive news is attributable – entirely attributable, even – to the success of the iPhone (News - Alert), for which AT&T serves as exclusive carrier (jailbreaking aside).
 
Even so, analysts still don’t fully understand the “stickiness,” or market leadership and lasting ability of the iPhone, Tehrani says. Apple’s (News - Alert) business model, the iTunes App Store, which is leveraging software technology to sell applications and allow users to tailor their devices, is one of the iPhone’s keys.
 
“Sure, many applications are able to run across other platforms but they generally run less effectively as they other devices don’t have the UI Apple does,” Tehrani writes. “Regardless, no other device has the plethora of apps that run on the iPhone meaning every day that goes by where new apps are developed, more consumers are effectively locked in.”
 
So AT&T relies heavily on its wireless revenue, meaning Fitchard’s report is very good news for the carrier.
 
McElroy reportedly told Fitchard that AT&T also is adding HSPA carriers at many cell sites.
 
“It’s being done on a market-by-market basis,” McElroy reportedly said. “We’re adding second and even third carriers according to demand. We’re also in the early phases of an 850-MHz overlay.”
 

Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users.


Michael Dinan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Michael's articles, please visit his columnist page.

Edited by Michael Dinan


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