AT&T denies system strain from iPhone

[David Farber <dave () farber net>]

Begin forwarded message:

From: dewayne () warpspeed com (Dewayne Hendricks)
Date: September 30, 2008 2:14:43 PM EDT
To: Dewayne-Net Technology List <xyzzy () warpspeed com>
Subject: [Dewayne-Net] AT&T denies system strain from iPhone

AT&T denies system strain from iPhone
Dallas Business Journal
By Jeff Bounds Staff writer

AT&T Inc.’s network has been struggling to handle heavy traffic from  
Apple Inc.’s iPhone, so much so that if it doesn’t spend $1 billion by  
the end of the year to correct the problem, it could begin to see a  
“massive consumer exodus.”

That’s the conclusion of Peter Misek, managing director, global  
technology strategist and head of research in the Toronto office of  
Canaccord Adams, a Vancouver, Canada brokerage.

“In the past two weeks, we believe that AT&T has been struggling with  
a network that is creaking from the strain of heavy iPhone usage,”  
Misek wrote in a Sept. 15 research note. “The situation is becoming  
dire in some urban areas to the point where making a simple phone call  
is becoming a challenge. Based on our checks, we discovered that  
AT&T’s engineers had warned management about the potential problem  
before iPhone was launched.”

<http://www.bizjournals.com/dallas/stories/2008/09/29/story9.html?b=1222660800^1706573&t=printable 
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