If you find this metric as astonishing as I do, consider this: The increase in Bay Area data traffic is actually below the national average–significantly below. According to AT&T (T) CTO John Donovan, 3G data traffic on the company’s wireless network has risen nearly 5,000 percent in the past 12 quarters nationally (see chart below; click to enlarge).

“Today, we’re seeing unprecedented growth in mobile broadband traffic,” Donovan said during his keynote at the Open Mobile Conference on Nov. 5. “This growth has required extensive rethinking of wireless networks as we know them, as well as significant advances in the supporting IP backbone and other infrastructure.”

A 5,000 percent increase in 3G data traffic: That’s an astonishing figure. Seems to me it’s entirely likely that any carrier that had been first with the iPhone–including catcalling rival Verizon (VZ)–would have suffered network troubles similar to those that plague AT&T today.

No other U.S. carrier offers a super-smartphone that has sold as well as the iPhone and that people use much like a laptop. Sure, Android and Palm (PALM) webOS devices are used in this way as well, but there are far fewer of them and they have significantly fewer data-hungry apps.

Research in Motion (RIMM) offers some BlackBerries that are used this way, but only some, and there are only 3,000 or so apps available for them. iPhone owners have 100,000 apps from which to choose. And while it’s obvious that there are more BlackBerries in use than iPhones, some of these rely on AT&T’s network, which only compounds the carrier’s problems.

So, really, any carrier that had been first to market with the iPhone would have seen its network overtaxed, especially after Apple (AAPL) launched the iPhone 3G and the iTunes App Store. Those events effectively upended traditional planning models for network capacity in a way that no one was prepared for.

Perhaps other carriers would have fared a bit better. Verizon’s 3G network, even back in 2007, was much deeper and broader than AT&T’s. But could it really have supported a 5,000 percent increase in data traffic without incident? I’m not so sure.

Which is not to say that AT&T is blameless. Its network has lagged and continues to do so, and the iPhone and the massive surge in data traffic it brought with it are not entirely responsible for that.

But they are obviously a big factor. It will be interesting, then, to see how Verizon’s network holds up in comparison if and when the carrier gets the iPhone.

[Image Credit: Morgan Stanley Managing Director Mary Meeker]

BoomTown’s week began onstage in front of thousands of chanting women. No, Kara wasn’t filling in for Oprah; she was doing something much cooler. She got snagged to moderate a panel entitled “Changing the World Through the Web” at Maria Shriver’s six-year-strong Women’s Conference. Kara’s panel included a group of VIPs from Facebook, Kiva, Blue State Digital–and the Twitterific Ashton Kutcher. With “Mission: Kutcher” accomplished, Kara followed up with the complicated world of MicroHoo and offered analysis on the still-pending search deal. Moral of the story: Commentators should give it time, and Carol Bartz should quit with the Jerry Yang jabs. BoomTown rounded out the week at TEDMED. The conference covered the scalpel’s edge of med tech. And yes, in case you were wondering, synthetic skin feels gross.

Digital Daily covered the real-time search war early in the week when Microsoft’s Bing search folks announced a nonexclusive deal with Twitter to feed on its data stream. The deal did put Bing out front for once, but no one knows if the new info source will turn into profits for either search group. In a post foreshadowing a grisly murder, John reported results from a ChangeWave research study that placed the iPhone within striking distance of overtaking the Blackberry from Research in Motion (RIMM) in the smart-phone market. Okay, maybe it wasn’t that grisly, but it’s Halloween. Digital Daily rounded out the week by adding the iPhone to the pantheon of cat, dragon, rat and rooster that occupies the rim of your Chinese restaurant placemat. Apple’s (AAPL) iPhone officially made it to China this week, though without its signature Wi-Fi, and at a much heftier price point.

Peter Kafka lives at the crossroads of media and tech, and that’s exactly where he was almost run down by the Windows 7 “Family Guy” episode. Microsoft (MSFT) apparently bailed out of the deal when it took a closer look at what was actually inside. From the “not so fast” files, Peter covered a report from Interpublic Group (IPG) noting that ad revenue isn’t quite as sunny as some have suggested. Grim economic times caught up to AllThingsD’s big brother late in the week when The Wall Street Journal closed its Boston bureau. The move resulted in nine job losses, despite significant resources being poured into the paper by parent News Corp. (NWS).

The leaves are changing color over at Personal Technology, and Walt sensed that chill in the air meant it was time for his annual fall computer-buying guide. Operating-system choice was a big discussion; but he also touched on the latest must-haves in the memory, graphics, processor and form-factor categories. With a cup of Earl Grey tea to fend off the autumn chill, Walt trudged out to Mossberg’s Mailbox this week and came back with a fistful of letters. He dutifully replied to a question about migrating Microsoft files to a Mac running windows, offered clarification on the Windows 7 upgrade process, and weighed in on the rumor of a pending Apple device below a laptop but above an iPhone.

Katie finished it all off with a deep dive on the two latest netbooks. The HP (HP) Mini 31 and the Nokia (NOK) Booklet 3G both offer high style compared with their competitors, and each boast much higher screen resolutions than previous models. Though she came down on the side of the Nokia, Katie remarked that neither option would disappoint.

Bundle up as you head out for tricking and treating, and learn from Weekend Update’s mistakes. Remember to check and make sure that scary face is actually a mask before you bring that new friend home.

According to the CTIA, there are more than 246 million wireless data-capable devices at large in the U.S. today. Of these, 40 million are smart phones or PDAs, and more than 10 million are laptops. Little wonder that wireless data service revenue rose 31 percent to more than $19.4 billion in the first six months of 2009.

Revenue will no doubt continue that trend in the months ahead as wireless devices become more ubiquitous. Wireless carriers, then, would be wise to put some of their windfall toward building out their networks to cope with future demand lest they end up the butt of a joke in a rival’s advertisement.

Consider these remarks from Federal Communications Commission Chairman Julius Genachowski, spoken Wednesday at the CTIA wireless industry convention in San Diego: “We are fast entering a world where mass-market mobile devices consume thousands of megabytes each month. So we must ask: what happens when every mobile user has an iPhone, a Palm Pre, a BlackBerry Tour, or whatever the next device is? What happens when we quadruple the number of subscribers with mobile broadband on their laptops or netbooks? The short answer: We will need a lot more spectrum. The biggest threat to the future of mobile in America is the looming spectrum crisis.”

That’s the conclusion of an NPD survey that suggests that Mac households favor multiplatform environments, buy more gadgets and have the higher income needed to afford them.

“While Apple owners tend to own more computers and more electronics devices, there is also a high correlation among Apple owners and more affluent consumer households,” said NPD’s Stephen Baker. “The average Apple household owns 48 CE devices whereas the average computer household owns about 24.” (See chart below; click to enlarge.)

Not a surprise, really. Presumably, if you can afford to purchase a $1,199 laptop or desktop, you can afford to buy an assortment of other gadgetry to go along with it. A couple of other data points worth noting:

• 66 percent of Mac households own three computers or more, compared to 29 percent of Windows households.
• 63 percent of Mac households own an iPod. The same can be said of only 36 percent of all computer-using households.

Sadly, NPD’s survey didn’t explore how PCs are used in Mac households or how they ended up there in the first place. Are they leftovers from a PC-to-Mac switch? Are they corporate laptops? Entry-level machines for the kids? High-end gaming machines?

“The ‘PC Hunter’ ads, the ‘PC Rookie’ ads clearly have been winners in the marketplace,” Turner said. “And you know why I know they’re working? Because two weeks ago we got a call from the Apple legal department saying, ‘Hey’–this is a true story–saying, ‘Hey, you need to stop running those ads–we lowered our prices.’ They took like $100 off or something. I did cartwheels down the hallway. At first I said, ‘Is this a joke? Who are you?’ Not understanding what an opportunity. And so we’re just going to keep running them and running them and running them.”

But only after tweaking the ad in question to reflect Apple’s recently lowered prices, Ad Age reports.

Microsoft’s (MSFT) Laptop Hunters ad, which once depicted the supremely annoying “Lauren” opting for a $972 Dell (DELL) laptop over a $2,000 MacBook Pro now features no reference to that machine at all. Which is appropriate, since it was replaced with a new $1700 model in early June. And now, rather than harping on that $2000 price point, “Lauren” simply suggests that Mac users are “paying a lot for the brand.”

Not nearly as much as Microsoft is paying for these silly commercials. Anyway …

“We slightly adjusted the ads to reflect the updated pricing of the Mac laptop shown in the TV advertisement,” Microsoft told Ad Age. “This does not change the focus of the campaign, which is to showcase the value and choice of the PC.”

The new ad:

<br/><a href="http://video.msn.com/video.aspx?vid=6c7197c6-e6ac-4070-8aa0-e76ec5634ebe" target="_new" title="Laptop Hunters $1700 - Lauren and Sue get a Dell XPS 13">Video: Laptop Hunters $1700 &#8211; Lauren and Sue get a Dell XPS 13</a>

The old ad:

<a href="http://video.msn.com/?mkt=en-us&#038;playlist=videoByUuids:uuids:0170090f-53b2-40fc-89a4-c759cb088e0a&#038;showPlaylist=true" target="_new" title="Laptop Hunters $1700 – Lauren and Sue get a Dell XPS 13">Video: Laptop Hunters $1700 – Lauren and Sue get a Dell XPS 13</a>

Meanwhile, the market for traditional notebooks, which DisplaySearch defines as laptops with displays 12.1-inches and larger, will be flat year over year for the first time. And that’s interesting because one of the factors driving netbook sales, along with their lower price point, is screen size. Increasingly, consumers are looking for near-notebook-size screens in their netbooks.

“Mini-notes are forecast to continue to be a significant portion of the market. However, as display sizes of these devices have quickly moved from 7.0” to 8.9” to 10.1”, and now with the emergence of 11.6” and 12.0” mini-note products, it is clear that buyers want a light-weight device, but that they also want a bigger display,” said John Jacobs, director of notebook market research at DisplaySearch. “While these devices have certainly created a new market, our research indicates that they are predominantly used as secondary PCs by consumers, and are not replacing notebooks.”

It would seem then that the so-called “fastest-growing segment of the PC market” is also the most misunderstood. For what is a netbook but an underpowered laptop or a giant Gallagher-sized smartphone? Consumers are intrigued by the netbook’s low prices, but they don’t understand its value proposition.

“We need to make sure consumers are buying a PC intended for what they plan to do with it,” said NPD’s Stephen Baker. “There is a serious risk of cannibalization in the notebook market that could cause a real threat to netbooks’ success. Retailers and manufacturers can’t put too much emphasis on PC-like capabilities and general features that could convince consumers that a netbook is a replacement for a notebook. Instead, they should be marketing mobility, portability, and the need for a companion PC to ensure consumers know what they are buying and are more satisfied with their purchases.”

HP, which is now well practiced in programs like these thanks to three prior recalls, is providing free replacement batteries to those with affected machines.

“The ornamental design for an electronic media reader, as shown and described.”

About as exciting as the original Kindle design it describes, but this isn’t a utility patent, so you can’t really expect much from it. That said, the reference citations it contains are interesting. Among the devices included: the iRex iLiad, the NUUTbook an early prototype of the One Laptop Per Child Foundation’s XO laptop and Apple’s MacBook Pro.

Note: Be sure to see the liveblog of the Amazon announcement in New York by MediaMemo’s Peter Kafka, starting at 10:30 a.m. EDT.

Provided by Aircell, the service will cost laptop users $9.95 for flights of less than three hours and $12.95 for longer flights. Travelers using Internet-ready handsets will pay $7.95 regardless of the length of their flight. And make no mistake, the data show they will pay. Apparently, $10 is a pittance for distraction when you’re trapped in a center seat on a packed flight with “Paul Blart: Mall Cop” as your only in-flight entertainment.

“[People are] working, they’re doing their e-mail, they’re going into their corporate networks, they’re going to their Facebook page, they’re Twittering, they’re doing YouTube and other video sites, but they’re in fact doing more of it,” Aircell CEO Jack Blumenstein told the Dallas Morning News. “The data shows that people use almost twice as much of data during the course of a session and stay on almost twice as long as when they’re at a hotel or a hotspot on the ground. People clearly are engaged by it when they’re flying.”

[Image credit: Flickr/Bekathwia]

A Dell laptop, believe it or not. The Latitude E6400 XFR is Dell’s (DELL) first true entrant into the so-called “rugged” laptop category, and its an impressive one. Targeted at the military and first-responder market, the machine is encased in a chassis made of ballistic armor–one Dell claims has twice the impact strength of magnesium alloy. It’s powered by Intel’s (INTC) Core 2 Duo processor, runs Windows Vista and supports Wi-Fi, 3G mobile broadband and GPS. Perfect for military contractors, and more importantly, for the state and local governments currently lining up for billions of dollars in stimulus money. Said Dell spokesman Patrick Burns, “With the stimulus package under way, we’re getting lots of interest.” I’ll bet you are, because at $4,299, you’ll need a stimulus package to afford it.

According to the U.S. Consumer Product Safety Commission there have been 19 separate incidents of batteries overheating. Of those 19 incidents, 17 involved flames and 10 minor property damage. At least two people suffered minor burns. All told, the company is recalling about 100,000 2.15Ah battery packs used in Dell (DELL), Hewlett-Packard (HPQ) and Toshiba laptops. That’s only a fraction of the 9.6 million incendiary lithium-ion notebook batteries Sony recalled in 2006, which cost the company around $360 million.

But it’s a start.