Verizon Communications Inc. (VZ) said that wireless customer
additions remained strong throughout the fourth quarter, thanks to
demand for 4G smartphones and tablets.
In a news release, the telecom giant reported growth in
additions of its most lucrative long-term wireless contracts
quarter-to-quarter and year-to-year, but didn't provide specific
details. Meanwhile, customer-phone upgrades approached a
better-than-expected 10%, and upgrade volumes trended higher as
December progressed.
Verizon reiterated that strong customer volume and promotions
pressured its wireless margins in the quarter but also said it
expects the margins to return to historical levels in the first
quarter.
During December, Verizon and AT&T Inc. (T) both warned they
have to work harder to keep their wireless subscriber count growing
amid a sector price war that has prompted more customers to
leave.
Smaller rivals Sprint Corp. (S) and T-Mobile US Inc. (TMUS) have
been pressing pricing deals to win customers, with Verizon and
AT&T responding with promotions of their own.
Verizon plans to report its fourth-quarter financial results
Jan. 22.
Write to Tess Stynes at tess.stynes@wsj.com
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