Since the announcement that AT&T would providing 3G coverage for Apple’s iPad, lots of people have asked “Why?” This question is based on the fact that many people have been very disappointed—and even frustrated—by the performance of AT&T’s 3G network performance and coverage. But I think the answer to why AT&T was chosen again is not as much an issue of network performance as it is network technology.

AT&T, the company we all know and love hate, has stated in their quarterly earnings call that they plan to beef up their network quite heavily this year. Beyond what they already spend to upkeep their network, they plan to spend an additional $2 billion or so (for an expected total of $18-19B in 2010) simply to make their network stronger. We should all thank Verizon for being so blunt in pointing it out to AT&T; maybe that’s what they needed.

At their January 27th event, Apple announced what the networking aspects of the iPad are going to be. Basically, thanks to a “breakthrough” deal with (everyone sigh with me now…) AT&T, Apple is able to offer two different prepaid accounts for the iPad. The good thing, obviously, is that no contract is required. Furthermore, 250MB of data a month will only cost $14.99, while unlimited is just $29.99, and there is also free use at any of AT&T’s wifi hotspots. Furthermore, it can just be activated straight on the iPad as you want it with no hassle required at cellular network stores.