A new iPhone from Apple could cause huge headaches for AT&T


Apple, Inc.'s (NASDAQ: AAPL) iPhone 3G has admittedly caused problems for wireless partner AT&T, Inc. (NYSE: T). Little did AT&T know that so many iPhones would be sold and so much data would be pumped over its wireless network.

What would happen if a newer iPhone was announced and released this year that featured front-facing camera videoconferencing? Would the millions of iPhone users start sending out even more bucketloads of data doing a ton of live video over their iPhones?

AT&T's wireless network couldn't handle that, even though the company is very careful about not saying so. The #1 reason non-iPhone owners won't buy an iPhone is because of AT&T's network. That's not exactly a vote of confidence, and if a ton more data started flowing over AT&T's network soon, could the company even try to keep up? Will network upgrades come fast enough?

If not, AT&T's slowness to satisfy legions of data-hungry iPhone subscribers could sour the second-largest wireless carrier in the U.S. to a large degree. One thing is for sure -- Apple's continuing parade of upgraded iPhones won't hold back on the features -- and AT&T doesn't have "years" to deploy huge upgrades to its networks to keep up with a rapid iPhone base that just keeps on growing. Video chat for personal and business reasons could be a huge hit on a new iPhone -- if only AT&T can handle the load.

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Last updated: February 13, 2012: 04:16 AM

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