AT&T will expand its Wi-Fi coverage for subscribers in New York and introduce its first hotspots in the public areas of San Francisco, theAssociated Press reports.

These hotspots, which AT&T calls "hot zones,” are a bit different from the regular Wi-Fi hotspots you see in places such as hotels and Starbucks coffee shops. AT&T has clustered many access points to blanket a larger, outdoor public area with Wi-Fi coverage.

Specifically, AT&T will expand Wi-Fi coverage in the New York Times Square, and add hot spots in the Embarcadero waterfront district in San Francisco.

According to AT&T CTO John Donovan, AT&T will also set up hot zones near the Rockefeller Center and St. Patrick’s Cathedral, with plans to further expand Wi-Fi coverage in the future, especially in sports stadiums.

In January, AT&T pledged to spend $2 billion to improve its wireless network, especially with HSPA technology. However, 3G and HSPA only go so far; in places such as New York and San Francisco, where data-hungry iPhone users abound, extending Wi-Fi coverage in public spaces is definitely a welcome move from AT&T.