Not a friend to 3G

AT&T announced it will purchase $2.5 billion worth of 700-MHz spectrum — enough to comfortably cover 196 million people — in preparation for 3G phone releases, including a next-gen iPhone appearing in early 2008.

Going 3G is helpful for mobile TV "because signals can travel more easily through walls and other obstacles," according to Wired.

AT&T has implemented its 3G network in major markets, and stated the deal is not about expanding coverage but about "capacity and services."

3G will replace the 2.5G EDGE network AT&T currently uses. A large gripe with Apple's iPhone has been the "slower than molasses" 2.5G network it runs on.

Steve Jobs continues to push Wi-Fi as a mobile broadband solution, saying 3G chipsets "are real power hogs" at the O2 iPhone launch in the UK.