The future is looking bright for the two main telecom carriers on the Dow, Verizon (NYSE:VZ) and AT&T (NYSE:T). As we see the transition from 3G to 4G LTE data speeds, ushered in by the introduction of Apple's (NASDAQ:AAPL) iPhone 5, opportunity abounds for mobile-service providers with the most 4G exposure.
Verizon is beautifully positioned for this, with 371 markets compared with AT&T's 53. The iPhone 5 will be available through both carriers, but Verizon's domination of 4G markets gives the company an additional advantage in terms of attracting new subscribers. As more and more mobile users gain access to faster data speeds, overall data consumption will increase enormously, benefiting carriers in a big way. Expect to see changes made to smartphone contracts, specifically data plan components.
There's a lot to like about Verizon right now, with its 4.7% dividend (very attractive at today's low interest rate) and a potential upside in catalyst from 4G subscriber growth. However, it's important for investors to understand the implications and potential risks that the iPhone 5 will introduce in the telecom arena. The stakes are high, and the opportunity is huge, so we've just released an exclusive report covering all you need to know about the iPhone 5. By picking up a copy of our premium research report on Apple, you'll learn everything you need to know about the launch and receive ongoing guidance as key news breaks. Click here now to claim your copy today.
Andrew Tonner owns shares of Apple. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.