If the rumors are to be believed, the telecommunications sector is about to get a lot more competitive. With exchange traded funds (ETFs), you’re sitting on an opportunity.

The big news in the telecom sector is that Verizon (NYSE: VZ) is expected to start providing service to iPhones in January, reports Martin Peers for The Wall Street Journal. Between those frustrated with the AT&T (NYSE: T) network and Verizon loyalists who don’t want to switch networks to get the popular phone, the iPhone could give a serious boost to the company. [Telecom ETFs: A New Type of Smartphone Industry.]

However, the impact may not be immediate. The iPhone’s subsidy costs will probably cut into Verizon’s 2011 earnings, and the sudden drop in new iPhone applications on AT&T (NYSE: T) will probably boost the company’s margins. [Telecom and Tech ETFs: Working As a Team.]

One clear winner in the move is likely to be Apple (NASDAQ: AAPL), which could double its earnings in the United States if Verizon becomes a carrier, says Tech News World.

Will Verizon get flooded with AT&T refugees? Will those AT&T customers still satisfied stay in the network? It’s tough to call which way this one will go, so there are three ETFs that give a decent amount of exposure to both:

  • Vanguard Telecommunication Services ETF (NYSEArca: VOX). VZ is 23%; T is 22%
  • iShares Dow Jones U.S. Telecommunications Sector ETF (NYSEArca: IYZ). VZ is 11.9%; T is 15.6%
  • First Trust Morningstar (NYSEArca: FDL): VZ is 10.4%; T is 9.9%

For more information on the telecom sector, visit our telecommunications category.

Max Chen contributed to this article.

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