AT&T Will Be Able to Handle the iPhone

Monday, June 21, 2010

Pity AT&T and their troubled data network. While previous iPhones' data usage was largely confined to static webpages, simple apps and maybe the occasional song streamed through Pandora, the just-announced iPhone 4's (available June 24) hunger can best be described in one word: video. In other words: If you thought the iPhone was a data-hog before, you ain't seen nothin' yet.

The ability to capture 720p HD video and edit it right on the phone using the new mobile version of Apple's iMovie video editing software. Users will then be able to send their massive video files into the ether over the AT&T network.

-A Netflix app that can stream entire movies over either Wi-Fi or AT&T's network.

-A new operating system (iOS4 it will be called) that will allow users to keep audio-streaming apps such as Pandora running in the background while they complete other tasks. This should dramatically increase the usage of these data-heavy programs.

If the previous iPhones' comparably puny data demands were enough to bring AT&T's network to a standstill in some cities, what's going to happen when customers get their hands on these new features?

Of course, AT&T anticipated this and, just last week, announced the death of their unlimited iPhone data plans. But while this move may stem some of the bleeding, millions of iPhone users will be allowed to hold onto their grandfathered-in unlimited data plans, meaning it could be years before these caps have a noticeable impact on the network load.

At least their new "FaceTime" video calling feature (which takes advantage of the new front-facing camera) is currently Wi-Fi-only (a disappointing reality, considering the new Sprint EVO 4G does video-conferencing over 3G).

So how will AT&T handle this new data load? Other than vague comments by Steve Jobs at the recent D8 conference that it will all get better soon, we honestly have no idea. Even ambitious expansion of cellular network capacity is unlikely to fully tackle the problem—especially when one considers that this great new device will likely cause millions of new users to hop on AT&T's network. AT&T: You have our pity.

A Closer Look At The iPhone



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