On the heels of Yahoo deal, Verizon sees slowing phone growth

From CNET: The New York telecommunications giant is fresh off its Monday announcement that it plans to acquire Yahoo's core internet business. The deal is part of Verizon's broader strategy to transform itself into something more than just a basic phone company. Yahoo is expected to merge with Verizon's other online asset, AOL, to create a digital ad and media platform to rival online giants Google and Facebook.

"By acquiring Yahoo, we will dramatically accelerate the timetable for scaling up to be a major competitor in mobile media," Verizon CEO Lowell McAdam said in a statement Tuesday.

It's clear why Verizon needs to look elsewhere for growth: Its core wireless phone business has hit a wall. The company reported adding only 86,000 net new phone customers in the period, with much of its growth driven by new tablets. In comparison, Sprint said Monday that it added 173,000 postpaid customers, or folks with higher credit scores who pay at the end of the month.

The Yahoo acquisition comes at a unique moment for the wireless industry, with rival AT&T also looking to transform itself into more of a media business through its acquisition of DirecTV. Smaller players T-Mobile and Sprint, meanwhile, are offering more perks and discounts to win your business. The results are better deals for customers willing to hunt for them.

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