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I don't think AT&T will care the least bit, unless the Verizon rumors become true; people will just keep buying the iPhone in drones and they will keep using AT&T's service whether they like it or not. While I disagree with Verizon being a suitable provider, I would like it if they offered...
I believe its still AT&T's 3G network that is the problem. on WiFi the iPad 3g video looks OK, and the video on the WiFi iPad is OK.