Here, is the pre-iPhone effect. While Apple prepares to launch the iPhone 3 in June / July, (along with the return of Steve Jobs probably); AT&T is busy strengthening its network.
Apparently AT&T has arranged a 10x upgrade in bandwidth capacity to accomodate the iPhone 3’s rumored – 7.2Mbps browsing speed, unlimited over the air podcasts, videos / music from iTunes directly on iPhone etc.
The iPhone 3.0 already has MMS capabilities outlined, and Video recording can also be a possibility. The www features on the iPhone need to be backed by a strong network, and AT&T surely wants to ensure that they do not face lawsuits from angry customers over 3G performance. Another rumor we heard earlier suggested that Apple is considering other networks to offer the iPhone, this again puts AT&T under pressure.