AT&T is continuing to beef up their network to support the growing data usage of a certain smartphone. Their latest upgrade is a $1.93 billion purchase from Qualcomm for a large chunk of the wireless spectrum, which is expected to cover 300 million people in glorious 3G. This addition will help lower congestion and increase speeds, but customers may not be able to reap the benefits until the second half of 2011 when the deal is completed. By then, AT&T should be in the midst of rolling out their 4G network in a select few cities.
“This is very high-quality spectrum,” said New York-based Moffett, who rates AT&T shares “market perform.” “It’s especially concentrated in the urban areas. It provides a very strong signal inside buildings and it’s extremely good at penetrating walls and windows.”
With the Verizon iPhone looming overhead, this expansion may be a case of “too little, too late” for fed up AT&T customers. Granted, many users are more than happy with the network, but AT&T is sure to lose a decent chunk of subscribers to Big Red in the upcoming months.