
The iPhone’s success has not been without its drawbacks for AT&T. Most notable have been complaints about AT&T’s wireless network from a vocal iPhone community that have done serious harm to the company’s reputation. But recent signs suggest the source behind the network complaints are being ironed out, mostly due to recent network upgrades by AT&T. As analyst firm Trefis points out, the effort has not been without significant cost to AT&T. To the tune of about $2 billion more per year, in fact.
AT&T’s mobile capital expenditures have increased from $4 billion in 2007 (15% of mobile gross profits) to $5.9 billion in 2009 (18% of mobile gross profits). Mobile capital expenditures constituted 34% of all of AT&T’s capital expenditures in 2009, up from about 23% in 2007. We expect that AT&T’s mobile capital expenditures will continue to rise to 22% of mobile gross profits (45% of total capital expenditures) by the end of our forecast period.
But AT&T can’t be complaining too much. The company saw a 25% jump in profit last quarter.










Fake Steve’s call to action was in response to comments made by AT&T Mobility executive 