The sheer number of smartphone users on AT&T's network led the company's quarterly profit to increase 26 percent.  AT&T activated 3.1 million Apple iPhones during the last quarter, which is the second highest tally since launch in 2007.

"Wireless is our No. 1 priority," said John Stankey, AT&T president of operations, during a conference call with analysts.

AT&T, already stressed by the amount of data shared by the iPhone, must now prepare to be bombarded by iPad owners.  To help increase customer satisfaction and prepare for the iPad, AT&T plans to invest $2 billion more from capital spending into the project.

Some AT&T subscribers are still upset that the network will be even more heavily strained -- even with AT&T promising to increase spending to improve networks.  Analysts initially were pleased to hear of the network upgrade, but are hesitant to offer full support until the network is improved.  

Specifically, AT&T needs to focus on San Francisco, New York City, and other cities that have a large number of iPhone and other heavy data users in large numbers.  Both cities listed are expected to see a large number of iPad owners as well, so upgrading networks must be a priority.