Yesterday, we took a look at how the new Apple (NasdaqGS: AAPL) iPad Mini will reshape the tablet market and boost the company’s prospects when it goes on sale on November 2.

However, buying shares of Apple or other tablet makers, such as Google or Amazon, isn’t the only way to benefit from enormous popularity of these devices. That’s because, in addition to wi-fi, many tablets can now access the web through wireless networks run by AT&T (NYSE: T), Verizon (NYSE: V), Sprint Nextel (NYSE: S) and other carriers.

The iPad Mini is a good example. The 16 GB base-model version is wi-fi only and will cost $329. However, Apple is also releasing a 4G LTE iPad Mini later in November that starts at $459. (4G LTE is the latest wireless standard; it’s up to five times faster than current networks.) The company also sells 4G LTE capable versions of the full-sized iPad.

AT&T Is Seeing Strong Response to Its New Data Sharing Plan

The nation’s second-largest telecommunications company, AT&T, is certainly benefiting as consumers gobble up ever-increasing amounts of data through their tablet computers and smartphones. AT&T currently offers data-only plans for tablets starting around $15 a month for 250 MB with no contract.

AT&T has also recently introduced its Mobile Share plan, which lets its smartphone subscribers share data with other users and add other devices, including tablets. Over 2 million users have signed up for AT&T Mobile Share in its first five weeks. Of that total, a third have taken 10 GB of data or more.

The company, which reported its third-quarter results yesterday, added 139,000 data-only subscribers during the period, to bring its total to 6.4 million. In all, AT&T saw a net increase of 678,000 wireless subscribers in the quarter, including 151,000 postpaid subscribers (who sign on under long-term contracts). AT&T also said it activated 4.7 million iPhones and saw record sales of both Android- and Windows-powered devices.

About 64% of the company’s subscriber base now consists of smartphone users, which generate twice the revenue as regular cellphones.

As a result of these gains, AT&T’s total wireless revenue (including equipment sales) rose 6.6% from a year ago, helping offset a 1.6% decline in wireline sales as its voice customers continue to ditch their land lines for cellphones. AT&T now gets 73% of its revenue from data and wireless services.

The company’s overall revenue was flat, at $31.46 billion, which was shy of the consensus forecast of $31.59 billion.

Profits rose 3.3%, to $3.64 billion, or $0.63 a share, from $3.62 billion, or $0.61. Excluding the Yellow Pages division, which AT&T sold last year, it would have earned $0.62, up 5% from a year ago. That topped the Street’s expectation of $0.60.

AT&T Faces Stiff Competition

The company continues to face rising competition in the wireless space, which is making it more difficult to attract new customers and grow its revenue. In an illustration of just how saturated the market is, the number of wireless connections in the U.S surpassed the country’s population in mid-2011, according to a recent Trefis.com article.

To handle its rising data traffic and compete with other carriers, AT&T will need to keep spending heavily to boost the speed and reach of its network. Right now, it is in the process of upgrading to the 4G LTE standard.

In the last quarter, it spent $4.9 billion on capital expenditures, including network upgrades. AT&T now has the second-largest 4G LTE network in the country, behind Verizon. The company currently provides LTE service in 60 cities, with plans to add 47 more by year-end. AT&T can easily handle this ongoing cost, thanks to its high cash flow, which came in at $11.5 billion in the latest quarter.

AT&T Is a Dividend Standout

Another advantage of investing in AT&T over tablet makers is the company’s high dividend. Its quarterly payments of $0.44 yield a high 5.07% on an annualized basis. Compare that to Apple, which yields 1.72%, and Google, which doesn’t pay dividends. AT&T also consistently raises its payout.

In addition, the company regularly repurchases its own stock. It bought back 101 million of its shares in the last quarter, at a cost of $3.8 billion. Through the first nine months of 2012, its buybacks have totaled 271 million shares at a cost of $9.4 billion.

What do you think of this article? Please post your feedback in the “comments” section below!