AT&T announced that it is scurrying to upgrade its mobile network in anticipation for the new iPhone hardware that will hit shelves in June.

“We have the infrastructure capability to go to 7.2 [Mbit/s], and we’ll have the capability to go 14.4 and 20 in the next couple of years, so I think there’s coverage we’re going to improve, there’s quality we’re going to improve, and there’s speed that’s also going to get improved.” – AT&T CEO Ralph de la Vega

Reports revealed that half of the mobile data that AT&T routes is attributed to the iPhone, and Net Applications is reporting that more than two thirds of all mobile web data is linked to the widely popular mobile hardware.  AT&T has stated it is expecting a ten-fold increase in mobile data traffic on its network with the release of the new iPhone this summer.

The network upgrade was obvious when AT&T purchased a large batch of Juniper routers, which has been confirmed by AppleInsider.  The routers are optimized to handle streaming video and mobile broadcasting solutions like those being offered by Ustream.tv and their ‘mobile stream’ iPhone application.  Apple has reportedly set a strict deadline that asks AT&T to complete the upgrade, quality test it, and have it ready to go live no later than May 31st, 2009.

AT&T is also working hard on upgrading their coverage and service to their customers.  They are transitioning their 3G network to new frequencies (850Mhz) .  The longer wavelength, lower frequency 850MHz band has been growing in popularity among mobile providers because it provides greater coverage area using fewer towers and better penetration through walls and other barriers, such as foliage.