AT&T: No, We’re Not Capping iPhone 4 Upload Speeds

Is AT&T capping data uploads on Apple’s (AAPL) iPhone 4? Not on purpose. Turns out a software issue is responsible for reports of dramatic drops in data upload speeds in some regions of the country, including New York and Philadelphia. AT&T (T) tells me that a software defect in some of Alcatel-Lucent’s equipment has been crippling 3G HSUPA performance in the markets in which it has been deployed. The good news is Alcatel-Lucent is working on a fix. The bad news is AT&T doesn’t yet have an ETA for its delivery.

Here’s the company’s statement on the issue:

AT&T and Alcatel-Lucent jointly identified a software defect–triggered under certain conditions–that impacted uplink performance for Laptop Connect and smartphone customers using 3G HSUPA-capable
wireless devices in markets with Alcatel-Lucent equipment. This impacts less than two percent of our wireless customer base. While Alcatel-Lucent develops the appropriate software fix, we are providing normal 3G uplink speeds and consistent performance for affected customers with HSUPA-capable devices.