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FFC: Ipod use could further strain AT&T3G

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[You must be registered and logged in to see this image.]Although
Apple's iPod has yet to hit the market, the Federal Communications
Commission has expressed concern over its potential impact on
AT&T's 3G network.

Without naming AT&T, which has
secured a carrier deal for the tablet device, Phil Bellaria, director
of scenario planning, and John Leibovitz, deputy chief of the Wireless
Telecommunications Bureau, outlined their concerns in an FCC blog post
Monday:
With the iPad pointing to even greater demand for mobile
broadband on the horizon, we must ensure that network congestion
doesn't choke off a service that consumers clearly find so appealing,
or frustrate mobile broadband's ability to keep us competitive in the
global broadband economy.

The iPod is expected to come in two
model types, one of which enables both Wi-Fi and 3G connectivity. Amid
widespread concern that iPhone data service use has been overwhelming
AT&T's 3G network, the FCC may have good reason to be worried that
the 3G iPad, also set to use AT&T's network in the United States,
may exacerbate AT&T's perceived wireless-connectivity issues.

Cities
in which the smartphone enjoys noticeable popularity, including New
York and San Francisco, seem to be especially hard-hit by outages,
dropped calls, delayed messages, slow Web access, and service
interruptions. Heavy use of the phone's data services at large trade
shows ranging from South by Southwest in Austin, Texas, and the NAMM
music show in Anaheim, Calif., has reportedly brought AT&T's
network to its knees.

In announcing its quarterly earnings in
January, Apple said it sold 8.7 million iPhones, a 100 percent gain
over the last year. Analysts are predicting that Apple could sell
between 2 million and 5 million iPads in the first year. Obviously,
between that and the continued sales of the iPhone, AT&T's network
could quickly feel the strain. However, Apple seems to be standing by
AT&T.

"As you know, AT&T has acknowledged they're having
issues in a few cities" and are working on a plan to correct them,
Apple Chief Operating Officer Tim Cook said during the company's
earnings conference call. "We have personally viewed these plans, and
we have high confidence that they'll make significant progress in
addressing them."

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