Apple (AAPL) iPhone Give Carriers Hope For New Dollars

Cell carriers like AT&T (T) and Vodafone (VOD) have run into the problem that their home markets are becoming saturated. By many estimates, there are over 250 million cellphones in the US. AT&T, Verizon Wireless, and Sprint (S) have about 175 million customers among them

The Apple (AAPL) iPhone may have a tiny piece of the handset market now, but data about its use is giving carriers hope that they may be able to make more revenue from new services like internet visits, video downloads, and advertising.

"Matthew Key, who becomes chief executive of O2 Europe next month, told the Financial Times that 60 per cent of the company’s iPhone customers in the UK were sending or receiving more than 25 megabytes of data a month, the equivalent of 7,500 e-mails without attachments or 25 YouTube videos." Most of that data transfer is from time spent on the internet.

Carriers often have additional charges for data use and the customers who go onto the internet using wireless devices give cellular companies the chance to sell ads with that content.

The news shows the ripple effect that the iPhone is beginning to have across the industry. As more large handset companies like Nokia (NOK) and Motorola (MOT) copy the Apple interface and as 3G grows, the carrier industry may have another big burst of revenue growth.

Steve Jobs, helping others by helping himself.

Douglas A. McIntyre