It seems there is confusion as to whether the iPad will have Wi-Fi or 3G capabilities. According to AT&T CEO Randall Stephenson, in a surprising comment that shocked everyone, he downplayed the use of 3G on the soon-to-be-released iPad, announcing it’s mainly a “Wi-Fi driven product.” Apple CEO Steve Jobs implied earlier that the iPad will have a 3G compatiblity model and proclaim, AT&T’s iPad-only 3G subscription plans at the product announcement in January.
Nonetheless Stephenson announced at an investor conference that his “expectation is that there’s not going to be a lot of people out there looking for another subscription.” Amongst the hype and anticipation surrounding the iPad launch, many consumers were eagerly waiting for the announcement that Apple would open the iPhone and iPad up to a second carrier, to our dismay Apple convinced AT&T to offer pre-paid 3G service for the iPad, with no contract or time commitment.
Although the pay as you go idea was well received it was unexpected when AT&T announced that it has little faith in consumers paying for 3G on their iPads. When it already offers 3G services to PCs and netbooks from Hewlett-Packard and Dell.
Speculations are that Stephenson may be considering that the significant premium that would be paid by consumers wishing to enjoy broadband on the go: With the 3G models priced at  $130 higher than WiFi-only models, the cost of the 3G radio being only a tenth of that difference seems really costly.
Factoring in the cost of the subscription and the size of the iPad and most likely can’t be used while talking a walk, the iPad is much more expensive with only limited additional functionality, as WiFi hotspots escalate and 3G coverage remains spotty in some locations.
Stephenson also addressed his concerns about AT&T possibly losing its arrangement with Apple, saying that iPhone would be “an important part” of AT&T’s phone line up “for quite some period of time.” He did not elaborate on how much longer AT&T might keep its exclusivity deal, nor did he directly respond to speculation that Apple might be looking for a second wireless carrier in the US. Apple has also refuse, to comment on that matter.