AT&T invests in apps to tax its network

While we keep hearing reports of performance and coverage problems with AT&T’s 3G network. Most of AT&T’s DSL subscribers have the same available bandwidth as they have had for years. But hey, mobile apps are hot, so why not invest in them and sell them to your captive wireless subscribers?

De la Vega noted the explosion in application growth in the U.S. cell phone market over the past year. “No country has seen the growth we have seen,” he said. In 2009, U.S. wireless consumers downloaded 832.7 million applications, a ninefold increase over the past two years. He also noted that revenue from these downloads has increased some 60 percent.

At the company-sponsored event held on the eve of the Consumer Electronics Show, de la Vega outlined AT&T’s strategy for pushing new applications onto a slew of new devices, and he provided a glimpse into how the company plans to help developers make this happen and make sure its network can keep up with increased demand for data, especially on its mobile network. (Cnet)

The FCC has pretty much indicated that “line sharing” is not going to happen, and the last talk of open wireless devices ended with departure of the prior FCC chair. AT&T customers should expect more add ons and nickel and dime services on the same underpowered AT&T networks next year.  With no competition, AT&T can keep charging more for less.