Stephenson: U.S. networks unprepared for smartphone surge

AT&T announced plans to upgrade its 3G network to High Speed Packet Access 7.2 technology, promising considerably faster mobile data speeds. The operator confirmed the network upgrades--slated to begin later this year, with completion expected in 2011--on Wednesday, the same day AT&T CEO Randall Stephenson admitted existing U.S. networks are unprepared for the growing surge in subscriber smartphone usage. Speaking at the Wall Street Journal's D: All Things Digital conference, Stephenson said "I feel like we are closing the gap on this, but we're not there yet. We are about to see these issues manifest themselves industry-wide." He nevertheless defended the AT&T network's performance, noting that its customer churn has narrowed in recent months.

Stephenson's comments follow on the heels of controversy over AT&T network policies that prompted content placeshifting technology developer Sling Media to remove 3G access from the iPhone edition of its SlingPlayer Mobile video application. In a release, AT&T contended the SlingPlayer app would consume too much network capacity: "Slingbox, which would use large amounts of wireless network capacity, could create congestion and potentially prevent other customers from using the network. Applications like this, which redirect a TV signal to a personal computer, are specifically prohibited under our terms of service." According to SlingMedia, the iPhone app is WiFi-only at Apple's request.

For more on Stephenson's comments:
- read this Wall Street Journal article