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AT&T said Thursday that it will invest an additional $2 billion in its network in 2010 to make sure it keeps up with the growing demand from new smartphones and other 3G data devices, such as the Apple iPad, on its network.
During its fourth quarter 2009 conference call, Chief Operating Officer John Stankey said AT&T plans to spend between $18 billion and $19 billion in 2010 upgrading its wireless and backhaul networks to handle the onslaught of new traffic. This is roughly $2 billion more than the company had invested in the previous year.
Specifically, Stankey said AT&T will add 2,000 new cell sites and upgrade existing cell sites with three times more fiber links than it had in 2009. This will increase capacity for the backhaul network that connects the cell towers to AT&T’s main network. The backhaul portion of the network is a critical component to AT&T’s network. With these upgrades in place, Stankey said the company will be able to easily upgrade in the future to 4G wireless technology.
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AT&T will begin testing its 4G network using LTE, the same technology Verizon Wireless is using for its 4G network, starting in 2010 with a few commercial deployments ready in 2011 and more commercial deployments in 2012.
AT&T, which is the only wireless operator in the U.S. selling the
iPhone, has been the target of much criticism over this past year, as many iPhone subscribers, particularly in densely populated urban areas, have complained about dropped calls, slow Internet access, and poor all around service. Some critics claim the company has not been spending enough on network upgrades to keep up with growing demand.
Stankey acknowledged that AT&T has faced some difficulties, particularly in cities like New York and San Francisco. But he said the company is “closing the gap.”
He said there are periods of time during the week in some sections of Manhattan where nearly 70 percent of the phones active on its network are data-intensive devices. He said to
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