By now, every time you wanted to download a podcast or application from the App Store that was over 10 MB, you got an annoying message asking you to use Wi-Fi because the file was too large. But not anymore.

Apple lifted the 10MB cap, only to double it to 20MB, which should be a more reasonable figure for video and podcast downloads when out of Wi-Fi range. If you try to download files over 20MB though, a message will prompt you to switch to Wi-Fi.

Besides giving iPhone users a wider variety of content they can download over 3G networks, the cap increase may be a sign that the iPad will require larger file

downloads over 3G because of higher resoulation graphics and more complex applications.

The initial 10MB cap was put in place so that iPhone downloads won’t put too much strain on wireless networks, such as AT&T, which is struggling to handle the traffic. For example, AT&T iPhone tethering, which would produce even more traffic on the network, hasn’t been adopted yet, despite operators around the world enabling the option.

But despite difficulties with the AT&T network, Apple decided to forge a deal for 3G connectivity with the carrier again, this time for the 3G-enabled iPads arriving late this spring. Also, Sling Player 3G streaming has been enabled on the iPhone this week, after AT&T allegedly held back this feature because of fears of increased traffic.

AT&T must be under pressure to keep up with Apple’s traffic-demanding products because the carrier’s exclusivity with the iPhone in the U.S. is soon coming to a close.

AT&T is partnering with mobile phone giant Nokia on its venture into laptops. Mobile professionals will be able to purchase Nokia’s Booklet 3G for $299 with a two-year mobile data plan commitment.

The Booklet 3G will be available exclusively in Best Buy stores throughout the holiday retail season, and users will be able to buy the mini-laptop without a data commitment for $599. The Booklet 3G is powered by the Intel Atom processor, has a chassis made from a single piece of aluminum, and will run its operating system is Microsoft Windows 7.
The computer has Wi-Fi, 3G capabilities, GPS, a 120-GB hard-disk drive, and will be able to access programs from Nokia’s Ovi catalog. The system comes with a 16-cell battery that Nokia said will deliver up to 12 hours of battery life.

For Nokia, the move comes as smartphones and laptops are becoming increasingly similar in terms of pricing and capabilities. Computer makers are also seeing this trend, and companies such as Apple, Acer, and even Dell (Dell) are jumping into the smartphone market to capitalize on the mobile computing convergence.

AT&T is looking at netbooks and laptops as a way to generate additional revenues on its mobile data networks. The company has long had success discounting cell phones to get customers locked into a two-year service contract, and it is trying to replicate that business model with devices such as the Booklet 3G.

It is unclear how strong consumer demand is for subsidized netbooks, as many of these devices can be purchased outright for less than $400 and can be used with home Internet connections or open Wi-Fi.

The Booklet 3G will be available Oct. 22, and the $299 price tag will come with a data plan that costs about $60 a month. AT&T said the mini-laptop would also be offered with other rate plans and at pricing to be announced.

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Nokia (NYSE:NOK)’s first netbook, the Nokia Booklet 3G, is the equivalent of four aces. There is simply no other product that packs as much cutting-edge technology into a 2.5-pound Windows 7 package for less than $300.

By working closely with Microsoft (NSDQ:MSFT), Best Buy (NYSE:BBY) and AT&T (NYSE:T), Nokia has delivered a killer netbook that is priced at only $299 with a two-year service agreement from AT&T.

Make no mistake about it. Nokia has just set a new price/performance standard for netbooks that is going to cause Acer, Asus, Hewlett-Packard and the rest of the netbook pack to lower prices or provide more cutting-edge features for that sub-$300 price tag.

There may be other lower-priced netbooks subsidized by wireless service provider contracts, such as the HP (NYSE:HPQ) Mini 1151NR netbook for $200 with Verizon (NYSE:VZ) Internet access that begins at $39.99 per month. But there is no other netbook that offers 12-hour battery life with 3G wireless capability.

The biggest loser in the Windows 7 netbook bonanza may well be Acer and Wal-mart, which had teamed to offer a sub-$300 netbook. Look for a Wal-mart-Acer price rollback.

Combining the AT&T wireless service as part of the Nokia Booklet 3G bundle is the Acer killer here. AT&T, by the way, is the exclusive wireless service provider in the U.S. for the Apple iPhone. Look for Apple CEO Steve Jobs to closely examine that AT&T-Nokia deal as AT&T attempts to negotiate a new contract with Apple. That AT&T-iPhone contract is set to expire in 2010.

By the way, even with Apple (NSDQ:AAPL)’s Midas marketing touch, you can’t tell me that there aren’t a good number of iPhone users sick and tired of surfing the Net on an eye-straining tiny smartphone screen. Don’t think that some potential iPhone buyers aren’t going to eye and buy the Nokia Booklet 3G. That is going to irk Jobs to no end.

Also look for the Nokia Booklet 3G to cause a lot of people who were thinking about buying a desktop to choose the netbook alternative. You don’t need to be a geek to appreciate a small footprint system with a 10.1-inch display that lets you surf the Internet anytime, anywhere and anyplace.

It is no small matter that the Nokia Booklet 3G comes preloaded with Windows 7 and will be available on the first day the long-awaited operating system is launched Oct. 22. In fact, the Nokia Booklet 3G is a poke in the eye to all those who thought Windows 7 with its smaller footprint and faster load times does not have the chutzpah to drive a hardware refresh.

Congratulations to Nokia, Microsoft, AT&T and Best Buy for all combining here to set a new high watermark for netbooks. Best Buy might not get those same long lines you see at the Apple store when Apple releases a new iPhone. But my bet is the Booklet 3G is going to create enough buzz and excitement to draw a crowd of tech-savvy shoppers to Best Buy and a boatload of netbook sales for Nokia.

AT&T is throwing iPhone users a bone by offering MMS as of September 25, but is that enough to quiet a growing chorus of angry customers upset by what they see as shoddy service? Even though many people are pouring on the hate for AT&T, the still love the iPhone, according to reports. So if the cellular network is the problem, here’s a suggestion for Apple that’s guaranteed to keep at least some U.S. customers happy: Cancel iPhone exclusivity with AT&T.

This suggestion is nothing new, but the need for multiple iPhone carriers in the U.S. is taking on greater urgency as frustration with AT&T grows. The same day that AT&T announced MMS availability, a story appeared in The New York Times , which was basically one big complaint-fest from AT&T iPhone customers. Dropped calls, spotty service, and slow data connections made up the majority of the complaints in the Times story, and comments from iPhone customers on blogs and other sites around the Web echoed the Times report. Discussing the iPhone situation with the Times, AT&T’s chief technology officer, John Donovan said, “It’s been a challenging year for us.” Challenging? More like a “P.R. nightmare” as one analyst told the Times.

With a second — or even third — carrier, iPhone customers would be able to choose their own network, and the current load on AT&T’s infrastructure would be reduced. This could improve service for iPhone customers who stick with AT&T, as well as those who migrate to other networks. Multiple carriers would not be an ideal situation for AT&T, of course, since the company could lose a big chunk of revenue if there was a mass exodus of iPhone customers to other carriers. But with a reportedly questionable service record and a little over two years of iPhone exclusivity, perhaps AT&T has had long enough to prove its worthiness as the only iPhone carrier in the U.S?

The problems with AT&T and the iPhone were apparent earlier this year during Apple’s Worldwide Developers Conference. There were howls of derision coming from the WWDC audience when it was revealed that many international carriers would support two new features in iPhone OS 3.0 — MMS and tethering — when the new operating system launched, but AT&T would not.

MMS will finally make an appearance later this month on AT&T, but the carrier is reportedly delaying support for the iPhone’s tethering feature even though other AT&T handsets have this capability already.
An Open Marriage Would Be Profitable…for Apple
Besides customer choice and potential service improvements, another incentive for Apple to go with multiple U.S. networks can be found in a recent research note from Piper Jaffray analyst Gene Munster, according to a Barron’s report. Munster says the iPhone enjoys a much higher market share in countries where the iPhone is available on multiple cellular networks. In other words, more carriers equal more iPhone owners. Since Apple knows exactly how many iPhones the company has sold throughout the world, Munster’s conclusion likely doesn’t come as a shock to Cupertino. But if that’s the case, my only question is, “What’s the holdup, Apple?”

AT&T has spent years raking in huge customer fees from the iPhone, and according to a wide variety of reports, U.S. iPhone owners aren’t happy with the service they get in return. Apple needs to open the field up for the iPhone before angry customers march on — or send MMSes to — Washington asking for a government-style intervention to bring about iPhone carrier plurality for all.

Lots of apps means lots of data.
(Credit: Matt Hickey)

There’s been a lot of talk lately of AT&T customers–especially iPhone users–getting fed up with the quality of service they’re getting with AT&T. Issues include dropped calls, shoddy coverage, and slow data speeds. People are upset that they have a fancy device that loses much of its usefulness when the network drops out. I can feel their pain.

Indeed, I saw the effect myself this last weekend. The Penny Arcade Expo (PAX), one of the world’s largest gaming conventions, took place in Seattle, where I live. Thousands of the world’s nerdiest nerds were here, and, as you’d expect, many were using iPhones, meaning many were using AT&T’s 3G service.

PAX, which opened Friday, also had a handy guide on expojunkie.com for convention goers made especially for the iPhone. It featured maps, agendas, and other quick reference information to make PAX a better experience. The side effect was thousands of visitors using Seattle’s 3G coverage at the same time–in addition to the thousands of locals who already use it. Service slowed to a crawl.

By Saturday, the service was back up-to-speed for most of Seattle. AT&T may have hit a switch and turned on more towers. It has a team that monitors areas with major events and tweaks the network when one causes problems. Whatever the company did fixed it.

The blessing and the curse
But here’s the question: what are we to expect from AT&T when Apple sells millions of units of a revolutionary product that depends on its network and then provides millions of apps that put a huge burden on the same network? Do we really expect AT&T to be able to handle that much data?

Out of the frying pan…
You can find many entries in online forums where people cry, “Forget AT&T, I’m going to Verizon!” or something equally angry. But they’re not getting the big picture: by switching you’ll lose your beloved iPhone, but you’ll also be on a network which, if it gets the iPhone soon as rumored, could end up having the exact same problems AT&T is now, perhaps even worse.

AT&T: We’re working around the clock
I don’t think so. Especially considering that iPhone users are sticking around day after day. AT&T spokesman Seth Bloom, the company’s “Blogger Guy,” says the buffet is ordering more prime rib and mashed potatoes–to the tune of $17 billion to $18 billion this year alone.

He also says AT&T expects that 3G network capacity will match the growing user demand for data soon. “Crews are working around the clock to implement more than 1,900 new cell towers nation wide and doubling its fiber backbone to take up the rising customer volume,” he told me over instant message.

By Rik Myslewski in San Francisco • Get more from this author

Posted in Mobile, 9th September 2009 17:00 GMT

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AT&T – Apple’s US network of choice for the iPhone – will double the speed of its 3G service in six cities by the end of this year, and it plans to extend that service to 90 percent of its current 3G coverage area by the end of 2011.

In an announcement on Wednesday, AT&T said that it would deploy the upgraded service, HSPA 7.2, to Charlotte, North Carolina; Chicago, Illinois; Dallas and Houston, Texas; Los Angeles, California; and Miami, Florida before the end of 2009.

he company claims that the roll-out will extend to 25 of largest US markets by the end of 2010.

HSPA 7.2, as its name implies, provides a theoretical maximum throughput of 7.2 megabits per second. How close to that performance a user of an HSPA 7.2-capable phone – such as the iPhone 3GS – depends, of course, on network saturation, antenna location, and other factors.

Unfortunately, HSPA 7.2 suffers from some of the same limitations of current HSPA 3G technology, not the least of which is its difficulty in receiving a strong signal when indoors.

In addition to providing at least the possibility of improved 3G service to those lucky enough to live in the areas to be covered, the HSPA 7.2 upgrade will include what AT&T describes as “substantial additional wireless backhaul,” meaning an upgrade to the infrastructure that carries communications from mobile towers to AT&T’s IP backbone.

This upgrade, according to AT&T, will be robust enough to support the additional throughput of 4G LTE, which Big Phone plans to begin testing next year for deployment in 2011.

AT&T has been under fire recently for its already-saturated existing 3G networks, especially in dense urban areas such as San Francisco and New York City. Perhaps the HSPA 7.2 upgrade, along with the backhaul upgrade, will give those phone users some relief.