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IPhone Again Sold In New York; Bandwidth Problem Remains

AT&T was once again selling iPhones to metro New Yorkers yesterday after refusing to do so for a few days and suggesting that shoppers choose another phone, Niraj Sheth reports. Several blogs reported the decision -- and AT&T's sketchy reasoning -- over the weekend. Several reports speculated that AT&T's network was having trouble keeping up with the high data demands of the phone.

On Monday, AT&T issued a "terse" statement, Sheth writes, but declined to comment further on why it temporarily halted sales. It simply said: "We periodically modify our promotion and distribution channels."

Analysts say that other carriers face similar problems as high-end phones that download data and run apps proliferate. "A lot of it has to do with the limit of spectrum," says independent wireless consultant Jim Andrew, "and that's a problem for everyone."

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