The iPhone had been a gold mine for AT&T, the exclusive carrier of the trendy smartphone in the U.S. But the success is also proving to be something of a curse. AT&T is finding that it’s network is strained by the demands of nine million, data-hungry iPhones. Download speeds on AT&T have slowed to a crawl, upsetting customers who use the iPhone like a portable computer. Some report that it’s almost not worth trying to access the speedy 3G network during peak times in some cities. Like rush-hour, it is simply too clogged with other users. AT&T says it plans to spend nearly $18 billion this year to upgrade its networks. It needs to move fast, not just to handle the iPhone surge, but to salvage its reputation.
When iPhones run wild
The trendy phone is overwhelming AT&T’s network
FILED UNDER: Business