Demand for wireless services is rising sharply in North America. That’s partly because device makers continue to release new cellphones and wireless devices, such as Apple’s iPad and Amazon’s Kindle e-book reader.

As well, more customers are switching from traditional phones (or land lines) to wireless services.

Tap into wireless growth with blue chip stocks that operate networks

We think wireless carriers provide a conservative way for investors to profit from rising use of cellphones and other wireless devices. That’s because, aside from wireless operations, many wireless carriers also operate traditional phone, Internet and television businesses. This diversity helps cut their risk.

In the current issue of Wall Street Stock Forecaster, our newsletter that focuses on the U.S. stock markets, we take a close look at AT&T (symbol T on New York). The company now gets 50% of its revenue from its over 87 million wireless customers across the U.S. In contrast, the blue chip stock’s traditional telephone service now only supplies 45% of its revenue. (The remaining 5% comes from selling advertisements in telephone directories.)

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AT&T can handle the loss of its exclusive deal to handle the iPhone

AT&T has been the exclusive U.S. carrier of Apple’s iPhone since 2007. The device continues to attract huge numbers of new subscribers: In its most recent quarter, AT&T added 2.7 million new iPhone users. About a third of these customers were new to the company.

AT&T will probably lose its exclusive right to the iPhone when its contract with Apple expires later this year. However, the company has been upgrading its wireless networks and adding new smartphones to its lineup. These moves should help it hang onto its current customers and add new ones.

New services further diversify AT&T’s revenue

The company is adding a number of new services that are helping it offset lower traditional phone revenues and compete with cable companies. For example, its U-verse service transmits television signals through high-speed Internet networks. U-verse has 2.3 million customers, up 77% from a year ago.

We’ll continue to keep an eye on AT&T and other U.S. blue chip stocks in the fast-changing wireless market and update our buy/sell/hold advice accordingly in our Wall Street Stock Forecaster newsletter. Click here to learn how you can get one month free when you subscribe today.