Verizon Sees Subscriber Counts Growing Again

By Maria Armental 

Verizon Communications Inc. said it is on track to add more of its most lucrative long-term wireless contracts in the current quarter than it did in the previous quarter and in the same period a year earlier, partly thanks to new device launches that are driving phone upgrades.

The company said it is seeing strong customer demand for 4G smartphones and tablets on its More Everything shared data plans. Verizon has relied heavily on signing up tablets as a way of keeping its subscriber numbers positive and has even given away tablets free when customers add them to their data plan.

The wireless carrier also warned promotional offers, together with the strong customer volumes this quarter, will put short-term pressure on its margins and per-share earnings.

The company in late February completed its deal to gain full ownership of Verizon Wireless, buying Vodafone Group PLC's 45% stake in the wireless carrier for $130 billion. The acquisition is expected to sharply increase Verizon's profits this year and will give the company more flexibility in driving Verizon Wireless's future. Verizon has said it is looking to focus on smartphone penetration and connected devices, such as cars and tablets, to boost sales at Verizon Wireless.

Write to Maria Armental at [e-mail]

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