Rivals say they welcome Apple's entry into phones

Amid the hype around the iPhone, rival cellular handset makers and phone companies say they welcome the competition from Apple Inc. and its wireless partner, AT&T Inc.

Sound insincere? Not when you consider that with all the things today's so-called smart phones can do, customers are still using them mostly to make calls and, to a lesser degree, send text and other messages.

So far, carriers haven't reaped the revenue they had expected from mobile music downloads, streaming video and other features. That's why even rivals of Apple and AT&T are counting on the iPhone to whet the appetite for fancy handsets that deliver a host of functions.

"If it offers a very good user experience, the iPhone could help the entire industry for smart phones," said Chris Hazelton, an analyst at research firm IDC.

The possibility that the iPhone could be a boon to the business isn't stopping rivals from belittling it.

At a recent industry conference, Ivan Seidenberg, chairman of Verizon Communications Inc., said the Apple device didn't change his company's game plan. He noted such Verizon advantages as its faster data network and unique offerings such as V-Cast Music, TV phones and Song ID. The latter lets customers hold up their handsets to the radio, automatically identify the songs being played and download them immediately. Music for iPhones can only be downloaded from Apple's iTunes online store to a computer, then sideloaded onto the handsets.

Sprint Nextel Corp., like others, has researched the competitive issues around the iPhone, its likely customers and its shortcomings. That has helped the company form its strategy for winning customers, said David Owens, Sprint's director of devices.

The company found that the iPhone had the potential to promote Sprint's own smart phones, including the new Upstage. The iPod-like, touch-control device sports a slim cellphone on one side and a large multimedia screen for music and video on the other.

"Our strategy is very much focused on our full portfolio of products, our faster network and competitive prices," Owens said.

T-Mobile USA won't talk about the iPhone. It's pushing ahead with plans to roll out its HotSpot@Home service, which uses first-of-its-kind Wi-Fi cellphones to let customers move seamlessly between Wi-Fi networks — especially in the home — and conventional cellular networks.