Backhaul
Carriers are also hiring networking companies like Cisco and Juniper to help dramatically improve their backhaul -- the engines that power the traffic through the networks.
For instance, Cisco recently unveiled a router that can offer download speeds of 322 Terabits per second, which is fast enough to download the entire printed collection of the Library of Congress in 1 second.
"Before the iPhone, we couldn't imagine who would need a terabit router," Sharma said. "But soon that won't be nearly big enough."
The on-ramps and off-ramps to and from the cell sites are also getting improved. AT&T is growing their number of fiber-optic connections, and Clearwire is deploying microwave connections at its towers.
NEXT: Getting creative
Last updated December 27 2010: 5:35 PM ET
