At the launch of Apple's iPad, Apple's chief executive demonstrated the features of playing games and movies on the device.
Smartphones being able to transmit video, and their ability for video conferencing, is replacing TVs, computers and navigation devices in America.
Wireless carriers have failed to access the demand of the customers and rapid popularity of iPhones and its application is choking the networks.
Web browsing on the mobile phone consumes around 40 mega bytes while tuning to internet radio sucks 60 megabytes, YouTube video draws three times data of the first and live concert or match online uses 300 megabytes.
AT&T had become a headache for the customers because of choked networks, poor range and signal quality.
Morgan Stanley analysis has predicted increase in sale of smartphones and so a trouble for other carriers too due to more congestion in the networks.
Carriers are expecting to generate more than half of their revenue in just three to four years from the data transmission.
Giving new monthly packages to customers, carriers are trying to show their potential as AT&T has offered $30 a month plan to the iPad customers.
The iPad looks like a big iPhone or a touch iPod, and with a similar OS, will be able to communicate with both devices.
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