Concern Seen Over Network Congestion as IPad Goes on Sale
Some analysts warned that Apple’s iPad may strain AT&T’s network, but a carrier spokesman said it’s ready. A Wi-Fi-only was to be released Saturday in all Apple stores and most Best Buy stores, to be followed next month by a version that can also use 3G. Meanwhile, media companies are rushing to deliver iPad applications.
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The iPad is very bandwidth-intensive, said Bernstein Research analyst Craig Moffett. The large screen lends itself to bandwidth-hungry applications like video, he said. If Apple sells 2.7 million 3G iPads this year, that could be the equivalent of 1.7 million iPhones running on AT&T’s network, Piper Jaffray analyst Chris Larsen said. The iPad “certainly could put a strain” on AT&T’s network, if his sales forecast is right and consumers use the Internet capabilities extensively, he said. AT&T’s reputation would be hurt if it again falls short in capacity, Larsen said. Worldwide iPad sales are expected to reach 7.1 million units this year, research firm iSuppli said. Sales will double to 14.4 million in 2011 and nearly triple to 20.1 million in 2012, it forecast.
All of the work that AT&T has been doing over past several years to improve its network will serve iPad customers well, the AT&T spokesman said. “We factored the iPad into our network planning.” And “we think people will use the iPad on Wi-Fi a lot,” he said. “We make it easy for them to do so.” The carrier has been upgrading its 3G services around the country, particularly in large cities where it has had problems such as dropping calls and slow data connections. The device could be “a network hog,” said Jefferies analyst Jonathan Schildkraut. “Longer term, you could see it causing network congestion.”
Media companies unveiled a batch of iPad applications and Web site tweaks they've had in the works to bring TV and video content to the device. Disney introduced an application for its ABC network shows and a version of upgraded ABC Disney and ESPN sites customized for the iPad, which doesn’t support Flash, the technology used for most popular Web streaming video. Beyond streaming TV shows, the ABC app will make it easy for users to buy the network’s shows through the iTunes store, Disney said. CBS said it will have video and audio programming on the device, including shows from its broadcast network, technology content from CNET.com and an audio application from CBS Radio. Discovery said it introduced an application for its MythBusters series that features interactive video, games and Twitter and Facebook integration.