Thursday, January 28, 2010

Apple iPad Pressure on AT&T

As AT&T prepares to provide high-speed connections for the new tablet-style computer, it's redoubling efforts to make its network more reliable.

ASteve Jobs unveiled the tablet-style iPad computer Jan. 27, many of his pronouncements were greeted with cheers. In contrast, his revelation that AT&T (T) would be the exclusive U.S. provider of high-speed wireless connections for the Internet-capable device was met with audible sighs.

The reaction reflects dismay with the performance of AT&T's wireless network and concern that adding the iPad will only add to the strain. AT&T is the exclusive U.S. carrier of Apple's iPhone, a device that already places heavy bandwidth demands on AT&T's equipment. Even executives of the phone company concede the network isn't up to snuff in New York and San Francisco. "Consumers may expect more from their iPad than the network can deliver at this point," says Shira Levine, an analyst with Infonetics, a telecommunications market research firm. "There's potential for more consumer dissatisfaction."

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