SAN JOSE, Calif., Nov. 30, 2007

AT&T To Offer Faster iPhone Web Browsing

CEO Lets Slip: New Model Will Run On Faster Wireless Network; Price Unknown

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(CBS/AP)  AT&T Inc. says it plans to offer a version of an iPhone next year that runs on a faster wireless network so users can get speedier results when surfing the Web.

The move would address one of the main drawbacks about the smart phone made by Apple Inc. and distributed exclusively by wireless carrier AT&T in the United States.

"The slow AT&T network is one of the iPhone's few major flaws. People who pay that kind of money for a device expect it to perform quickly and many users have been disappointed. I think it was inevitable that Apple and AT&T would fix this with the next iteration," says CBS News technology analyst Larry Magid. "What I didn't expect was that the AT&T CEO would leak the news instead of waiting for an official product announcement from Apple."

AT&T Chief Executive Officer Randall Stephenson spilled the news during his appearance at an event late Wednesday at the Churchill Club in Santa Clara.

A spokeswoman for Apple declined to comment Thursday.

Stephenson said he didn't know how much more the new version will cost than the existing model, which sells for $399.

Quote

Knowing that they will be coming out with a model that fixes a major flaw could certainly give someone pause before buying the current generation iPhone.

CBS News' Larry Magid
"This is good news for anyone who buys the next iPhone but pre-announcing it could stifle iPhone sales during the holiday. Knowing that they will be coming out with a model that fixes a major flaw could certainly give someone pause before buying the current generation iPhone," says Magid.

Many industry observers had expected Apple to make the iPhone work on faster 3G networks at some point but couldn't pinpoint when. The current model - Apple's first foray in the cell phone market - runs on 2.5G networks, or in AT&T's case, its relatively slow EDGE network.

The difference in performance is similar to a dial-up Internet connection versus a high-speed broadband connection.

© MMVII, CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
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Add a Comment See all 11 Comments
by MacTrek777 December 1, 2007 8:46 PM EST
I''m glad they''re going to add 3G speeds but unfortunately for me where I live they don''t have the network in place yet. In fact this is one reason Apple didn''t offer it in the beginning. Until they get 3G networks out here it''s not that big a deal.
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by ron4mac December 1, 2007 1:17 AM EST
Plans for using the faster 3G data connection in the iPhone have not been secret. Steve Jobs has stated that a 3G iPhone is coming, but that the delay is due to excessive battery life consumption with existing 3G chipsets. The iPhone presently uses the EDGE network for its data connectivity.
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by ms38654ob November 30, 2007 6:20 PM EST
What is really needed is an iPhone that runs Android or at least will be compatible with it.

Apple announced they were opening up iPhone for 3rd party applications. Eventually, it will be as open as the Mac.

p.s. For the posted about Linux: It''s not your father''s Linux anymore. It''s easy to install and runs on just about any computer. Just take one of your old Win/2000 computers that wouldn''t upgrade to XP or Vista and install Fedora on it. You''ll be amazed at how simple it is.
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by prolegomena November 30, 2007 5:55 PM EST
Just another example of Apple''s ability to create the coolest technology, and absolutely fumble the deployment through poor choices of partners... Did anyone really thing that AT&T was a good business partner?

Sheesh... of course, in Europe, they are forcing Apple and their distributors to open the device for use on any carrier. If only that could be done here... but for now, the AT&T partnership will continue to be the biggest reason this loyal Mac adict will NOT buy an iPhone.
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by newz4i November 30, 2007 2:03 PM EST
What is going on here? NEXT year iPhone will have a model which "works?"
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by dan9111 November 30, 2007 1:39 PM EST
Amazing the competitors of Microsoft so willingly build closed-systems and "bundles" of products. If only there were a handheld with Linux. And if only Linux were not a kludgey poser-hacker-toy. Build a new lightweight OS with open-interfaces and someone could dominiate this market.
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by dredre2k November 30, 2007 1:16 PM EST
Actually, I''d rather the next iphone have other features instead of the HSDPA 3g:

1. GPS
2. STEREO BLUETOOTH - I own an iphone and was ticked when it wouldn''t support my existing stereo bluetooth headphones.
3. File Storage & USB drive capability - why not take the next step and allow the iphone to store files?

That''s all... i own and iphone now and I love it! I would really like to have the additional features though.

Ditto on the notion that the CEO has killed iPhone sales for Christmas by letting the news slip. LOL!
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by rafterman1 November 30, 2007 12:57 PM EST
===That just killed holiday sales for Apple. Maybe the moron CEO at AT&T should cover the losses out of his own pocket. That would teach him to keep him pie hole shut.===

Or maybe Apple should have gotten its head out of its a$$ and released the first iPhone with 3G technology to begin with instead of releasing a phone with data network speeds that were good 5 years ago.
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by nathan8804-2009 November 30, 2007 12:51 PM EST
That just killed holiday sales for Apple. Maybe the moron CEO at AT&T should cover the losses out of his own pocket. That would teach him to keep him pie hole shut.
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by pepperp1 November 30, 2007 11:30 AM EST
About time....good news ...........
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