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That means another way for you to make money from the iPhone 5, without having to buy Apple Inc. (Nasdaq: AAPL) stock.
Apple has raked in billions while first AT&T Inc. (NYSE: T), and later Verizon Communications Inc. (NYSE: VZ), and Sprint Nextel Corp. (NYSE: S), had their margins slammed by the huge subsidies they sent to Cupertino.
But evolving consumer habits and the Apple iPhone 5's addition of LTE network technology will soon change that in a big way.
The carriers are hoping the much higher data transfer speeds of LTE - approximately 10 times faster than 3G - will coax iPhone 5 owners to use more data-heavy functions, particularly video.
"With these great networks coming on, [data] usage is going to go up. Revenues will go up," AT&T Chief Financial Officer John Stephens said at recent media and communications conference.
While the carriers will still have to fork over the same fat subsidies to Apple they always have, the new data equation means they'll make the money back much more quickly. And that will translate into bigger profits.