Can AT&T Meet iPhone Network Demands?

When AT&T (T) cut the deal that made it the exclusive U.S. distributor of Apple's iPhone, the carrier bet correctly it would attract millions of new subscribers. What it didn't bargain for: the huge demands the device would impose on AT&T's network. Thanks largely to the iPhone's ability to surf the Web, play videos, and run all manner of software-based tools called apps, by some estimates AT&T now handles more than twice as much smartphone traffic as any other U.S. carrier. Or mishandles, as the case may be. In areas where the devices are most common, such as San Francisco and New York, the iPhone often drops calls or fails to deliver Web access at speeds implied in Apple ads.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.