AT&T has realized that the first step towards recovery is admitting it has a problem. The phone giant has confessed that its New York City iPhone service is not up to par, according to a presentation slide published on Tom's Guide noting that the company's 3G Voice Composite Quality in the New York metro area—particularly in Manhattan—is below its performance objective.

This shouldn't come as much of a surprise. Last month, the phone giant explained that 3G service has suffered in New York due to "better than average iPhone penetration," meaning "AT&T has been too successful in selling the iPhone, to the point where the network has been severely strained." The company even briefly stopped selling iPhones online in New York City because the area didn't "have enough towers to handle the phone."

The slide does contain some good news for AT&T subscribers. Apparently, AT&T has had "[t]hree consecutive months of improvement" and it is doing "change-outs" of Radio Network Controllers among other upgrades, according to Mobile Crunch. Anyone notice service improving over the past few months? If we don't hear back we'll assume you're still waiting for this page to load.