AT&T & Verizon's Future Is in Your Fridge

Carriers' data revenue rose 22 percent to $12.5 billion in the first quarter of 2010 over the same period a year ago, according to the latest data from Chetan Sharma, a wireless analyst. However, while data now contributes slightly more than 30 percent to the total average revenue per user (ARPU), it also uses 70 percent of network capacity. Sharma estimates that by the end of 2010, data will contribute more than 35 percent to ARPU and devour 85 percent of network capacity. So even as data revenue and traffic rises, carriers face two key challenges: One, the handset market is saturated; and two, users on smartphones are boosting their consumption of data at a far faster rate than carriers are boosting their data revenue. The answer to these challenges is selling data plans for your car. Your kitchen. And even your electric meter.