Verizon Wireless subscription growth slows

From CNET News.com: Verizon Communications saw revenue slip in the third quarter of 2010 as it experienced a decline in wireless subscribers.

For the third quarter of 2010, Verizon today reported a profit of $881 million, or 31 cents a share. This was down from $1.18 billion, or 41 cents a share, during the same quarter a year earlier. Excluding certain items, such as merger and restructuring costs, earnings dropped to 56 cents per share from 60 cents and revenue declined 2.9 percent to $26.5 billion. Analysts had expected Verizon to report earnings of 54 cents on $26.3 billion in revenue.

Verizon's wireless business struggled to keep up with rival AT&T during the quarter. Verizon added 997,000 new wireless customers in the third quarter, compared with 1.2 million customers a year before. The company added 584,000 "postpaid" subscribers, or those who have contracts.

Meanwhile, AT&T, which announced third-quarter earnings yesterday, said it added 2.6 million new subscribers during the quarter. AT&T added 745,000 postpaid subscribers, of which about 80 percent of whom were using smartphones.

AT&T's smartphone growth was fueled by sales of the Apple iPhone. AT&T has had an exclusive deal to sell the iPhone in the U.S. since the device's launch 2007. There are rumors that Verizon will get a version of the phone starting in January.

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