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In May, AT&T set up a free Wi-Fi hot zone in New York City’s Times Square. Now AT&T has added free public Wi-Fi hot spots in Charlotte, N.C. to help alleviate network congestion. It’s free only to AT&T customers.

AT&T announced today that it will provide free Wi-Fi in large outdoor Wi-Fi hot zones in Charlotte, with coverage from South Brevard Street around the NASCAR Hall of Fame Plaza to East Trade Street. It also offers customers waiting to use the nearby Lynx light rail free Wi-Fi.

AT&T plans to further expand the pilot project with the launch of a third AT&T Wi-Fi hot zone in Chicago in the coming weeks.

AT&T wireless and broadband customers get Wi-Fi access free in the hot zones. The hot zones are meant to offload some of this traffic from the AT&T cellular network. Customers can log onto AT&T Wi-Fi hotzones or more than 20,000 AT&T Wi-Fi Hot Spots nationwide without it counting toward their monthly smartphone data usage. AT&T said usage in the Times Square hot zone has been higher than expected.

Free Wi-Fi is now the norm.

AT&T reported a significant second-quarter traffic increase on its Wi-Fi network, dominated by Starbucks and McDonalds locations.

In other news, AT&T plans to fix a software glitch that cut speeds for the new iPhone 4 and laptop modems over the next 2-3 weeks. AT&T had said on July 7 it was working with network equipment maker Alcatel Lucent to fix the glitch, which it said affected less than 2 percent of its mobile user base.

HSUPA technology can deliver up-link speeds up to 5.76 Mbit/s. An Alcatel-Lucent software patch for the network’s basestations is expected to restore uplink speeds, and “will be deployed on a phased basis over the next two to three weeks,” AT&T spokesman Mark Siegel said.

Apple has also had to provide free cases with iPhone 4 to help mitigate problems with the phone’s antenna, a saga that was nicknamed “antennagate.”

Meanwhile, a stalled plan to provide Transit Wireless in all 277 underground subway stations in NYC is back on track, says the NY Daily News. Under the deal, cell-phone companies pay Transit Wireless to carry their signals, and the MTA gets half the revenue. Transit Wireless is expected to cover all construction costs.

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