Mobile data usage is finally catching on, despite its high costs: AT&T's revenue from mobile data services rose 52% in the second-quarter compared to the year-earlier period, MediaPost reports, to $2.5 billion:

"The wireless giant said revenues from mobile Internet use had doubled and services such as e-mail, text-messaging and data access each had more than 50% growth."

The report also said that 18% of AT&T's contract customers had smartphones, up from 8% last year; the average revenue per user (ARPU) for these is roughly double the company average. Remember that AT&T is also the sole provider for a certain news-making cell phone as well.

AT&T played games with iPhone owners' wireless dreams this morning. Again.

For a short while, the cellco had a notice up on its Web site proclaiming free access to its 17,000 US Wi-Fi hotspots for all iPhones. Then, just like when it made the same announcement a couple months back, AT&T was all "Oops. Sorry. We take it back." Again.

The first tease happened back in May, when the company began offering free Wi-Fi for Laptop Connect customers who use its 3G data service for computers, CNET's News.com reports. Then, as now, it mistakenly posted news of free access for iPhone users as well.

A company can easily make that kind of mistake once. When it happens twice, we start to wonder if maybe the "mistake" was intentional. Either that, or someone at AT&T just likes playing sick jokes on poor, hapless iPhone owners.

(Image Credit: Clipart.com)

AT&T said on Tuesday it wants to expand its business of delivering online media, according to Reuters, moving to compete more directly with specialized content delivery companies such as Akamai Technologies and Limelight Networks.

Currently it counts AccuWeather.com and Forbes.com among its client roster, both of which have significant mobile components. The carrier said that it wants to do more deals like this. So in order to support the expansion, AT&T said it plans to spend $70 million by the end of the year to strengthen its network infrastructure in the U.S., Europe, and parts of Asia.

With all the anticipation built up around the July 11 availability of the 3G iPhone, InformationWeek took some time to find out what types of hoops AT&T customers will have to jump through in order to get one of the sleek and shiny handsets at the new subsidized rates.

AT&T spokesman Mark Siegel told the publication that folks who already have an iPhone can upgrade to the 3G model at the low, subsidized price of $199 for the 8GB handset and $299 for the 16GB one. Of course, taking advantage of the offer requires signing a new two-year contract. AT&T customers who bought their iPhone after May 26 who choose to go 3G will be refunded the difference between what they paid and the subsidized price of the new version, but they will have to pay a 10% restocking fee.

According to the article, qualifying for the subsidized price on a 3G iPhone if you're not upgrading from the prior model is a whole lot more complicated. Siegel declined to tell the magazine the specifics of how AT&T plans to qualify new iPhone purchasers. "There's a whole lot of variables, and I would hate to give specific criteria," he said. "It's not a one-size-fits-all approach."

AT&T has finally joined the ranks of mobile operators that report their music sales for inclusion in the Nielsen RingScan charts, giving Nielsen point-of-sale reports from all major US carriers, Mediaweek reports.

RingScan tracks downloads of polyphonic ringtones, mastertones, ringback tones and full-track songs. It currently charts Billboard's Hot Ringtones, RingMasters and Hot Digital Songs. A ringback tone chart is coming later in the year.

RingScan, Billboard and Mediaweek are all part of the Nielsen family.

AT&T has added two new applications to its catalog that are designed to help its customers connect with their online world.

The wireless operator now offers JuiceCaster 6.0 from Juice Wireless. With JuiceCaster, users can share videos and pictures from their phone to Facebook, Twitter and other social network sites. Also, AT&T customers exclusively can use the app to post directly to YouTube and Flickr without a computer or Internet connection.

JuiceCaster works with 2G and 3G AT&T phones and costs $2.99 a month.

The operator now also offers Buzzwire, a new service that provides access to a vast media library directly from an AT&T phone. Buzzwire content includes more than 5,000 clips ranging from Webisodes and user-generated video to news, sports and entertainment programming. Users can create their own media channel with video, audio and live radio content and stream it to their phone with a single click. They can also see what everyone else is watching with "Today's Buzz," which lists the top 10 most popular video clips on the Web, and bookmark any of the listed clips for later viewing.

Buzzwire works on most 3G handsets and is available for $4.99 a month.

See if you can follow this logic without twisting your eyeballs around the side of your head, because we couldn't.

An attorney for AT&T told the Federal Communications Commission yesterday that the early termination fees (ETFs) that consumers pay for switching cell phones in mid-contract are a "great deal," Ars Technica reports. "ETF-backed term contracts give customers the ability to lower their monthly charges and upfront handset costs, in exchange for their promise to pay monthly charges for the life of the contract or alternatively to pay the ETF in lieu of the remaining charges," Seamus C. Duffy said to the FCC, according to the report.

Not only that, but "the overwhelming popularity of these rate plans has fueled the tremendous increase in wireless penetration, usage, and technical innovation documented by the [FCC's] annual reports on wireless competition."

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In other AT&T news today, AT&T has settled a class action lawsuit involving unauthorized cell phone charges for mobile content, including ringtones, games and graphics, MediaPost reports:

"The settlement, approved by a Georgia court, includes more than a dozen lawsuits filed by AT&T subscribers nationwide, according to law firm KamberEdelson, lead counsel for the plaintiffs. The suits alleged adequate safeguards were not in place to ensure customers were billed only for services they had purchased."

The report said that at issue were some partnerships AT&T had with mobile content providers that let the companies automatically charge ringtones and other things to customers' accounts—not a good thing, as you could imagine. Verizon Wireless, Sprint Nextel and T-Mobile still face similar suits, according to the article.

Terms of the settlement weren't immediately available, though AT&T is reported to owe $4.3 million just in the plaintiff's legal costs alone.

Starbucks coffee shops across the country are offering two hours of free Wi-Fi Internet service through AT&T, CNET News reports. This caps a month-long, quiet roll-out by the nation's largest cell phone carrier.

However, in order to get the free service, "customers must buy a Starbucks Reward Card with a minimum of $5 credit on it," the report said. "Customers also must sign up for the free Wi-Fi online at Starbucks.com. To keep the card active, customers must also use their Starbucks Card at least once a month."

That's not exactly free, for those of us who are counting—though Starbucks will also throw new members a voucher for a free drink.

The free AT&T Wi-Fi offer comes as Starbucks phases out a seven-year relationship with T-Mobile, the report said. Existing T-Mobile customers will still be able to sign in.

AT&T has finally implemented a consumer-friendly prorated early termination fee (ETF), Engadget reports, which enables new and renewing subscribers to have their $175 ETF drop by $5 for every month they stick with the carrier and pay the monthly bill.

That's not all that wonderful, because as the story points out, you'll still end up owing 60 bucks if you cancel with just one month remaining on your contract. But this is a step in the right direction, and lowers the sting if you're not satisfied with the coverage or media options and want to try a different carrier.

Now AT&T and Verizon both have these plans in effect; we're still waiting for T-Mobile and Sprint to follow through on their promises to do the same.