| Posted by: Zooped, January 29th, 2010 - No Comments » |
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As Apple Chief Executive Steve Jobs unveiled the tablet-style iPad computer Jan. 27, many of his pronouncements were greeted with cheers. In contrast, his revelation that AT&T (T) would be the exclusive U.S. provider of high-speed wireless connections for the Internet-capable device was met with audible sighs.
The reaction reflects dismay with the performance of AT&T’s wireless network and concern that adding the iPad will only add to the strain. AT&T is the exclusive U.S. carrier of Apple’s iPhone, a device that already places heavy bandwidth demands on AT&T’s equipment. Even executives of the phone company concede the network isn’t up to snuff in New York and San Francisco. “Consumers may expect more from their iPad than the network can deliver at this point,” says Shira Levine, an analyst with Infonetics, a telecommunications market research firm. “There’s potential for more consumer dissatisfaction.”
If Cupertino (Calif.)-based Apple (AAPL) has its way, iPad users will consume a lot of bandwidth-hogging media. The iPad lets users purchase and download books, movies, and other large files. Marketers may also find ways to deliver multimedia ads and other content wirelessly to the device. If the iPad is successful, “the volume of data would be the same the iPhone consumes plus another 50%,” says Mike Manzo, chief marketing officer at Openet, a maker of software that helps carriers manage network traffic.









