Currently, AT&T offers 3G speeds of 700 Kbps to 1.7 Mbps for a typical download and 500 Kbps to 1.2 Mbps for an upload using High-Speed Downlink Packet Access/Universal Mobile Telephone System (HSDPA/UMTS) technology.

McElroy said AT&T is conducting trials of the upgraded 3G network in two markets and plans to expand the changes across the entire network once the tests are completed. The move is expected to be AT&T's last change to the existing HSPA network. AT&T plans to switch to HSPA+ later this year, which could triple peak speeds on the network.

Not only is AT&T adding capacity through upgrades, it's also including HSPA carriers at various cell-phone sites. McElroy said it's being done on a market-by-market basis and second and third carriers will be added based on demand.

In order to deal with the increased data traffic from its network upgrades, AT&T is upgrading its backhaul network wherever possible, according to McElroy.

Increase Necessary

The carrier first launched its 3G network in 2005, supporting 1.8 Mbps. Over the past few years, AT&T has upgraded to support 3.6 Mbps. Most mobile devices, including smartphones, laptops and Apple's iPhone, have the ability to use more capacity.

AT&T is now in the midst of certifying 7.2-Mbps devices on its two test networks, McElroy said.

AT&T's upgrade is necessary as both the carrier and Apple have been under fire for misleading consumers on the power of the network. Both have been sued for delivering data to the iPhone at slower speeds than promised in the companies' marketing.

Lawsuits against the companies have been brought in Florida; San Jose and San Diego in California; and Alabama.

Beyond 3G

AT&T is also moving toward 4G, according to McElroy. He said AT&T is in the midst of choosing vendors for its Long-Term Evolution (LTE) network and expects to have its test markets ready in 2010.

LTE is the expected successor to UMTS 3G technology and is expected to enable faster data rates for downloading and uploading.

AT&T will use its 700-MHz and advanced wireless services spectrum to launch LTE, according to McElroy.