As expected AT&T is preparing for the data hungry, iPhone 3.0 with a HSPA update to its network. This includes new 2100 cell sites with with 20 new areas, 3G speed up to 7.2Mbps (High Speed Packet Access), more bandwidth for high usage areas etc.
AT&T also plans to begin LTE trials by 2010 and bring it main stream by 2011. Well this might help them retain the iPhone that Verizon is eyeing :). But this announcement from AT&T just before WWDC 09 goes in line with our iPhone 3.0 expectations.
Apple hopes to make iPhone a heavy Internet device. It already holds the maximum mobile internet usage title, but video editing and upload from your iPhone can consume crazy bandwidth. AT&T surely needed an update to their 3G network, the iPhone 3G had put its network to test, and as a result, Apple+AT&T even faced lawsuits for poor 3G reception. iPhone 3.0 will push the network requirements higher than our expectations IMO and just firmware tweaks won’t help AT&T.