Verizon Adds 2.2 Million Subscribers, But Posts Loss

Tue, 09/03/2010 - 5:14pm — CellAdmin

Verizon said it added 2.2 million wireless subscribers, showing resilience in the face of tougher consumer spending, despite posting a fourth-quarter loss due to its shrinking landline business.

The Basking Ridge, N.J.-based carrier said it added 2.2 million customers -- up from the 1.4 million added last year -- for a total of 91.2 million subscribers. However, it posted a $653 million loss in the quarter, much of it due to a $3 billion charge related to layoffs in its landline sector.

"We focused on expanding wireless data and set the stage to deploy a nationwide 4G network later this year," said Ivan Seidenberg, Verizon's Chief Executive. "We're facing some more significant headwinds than we thought we would face from the economy."

The company has struggled to keep up with rival AT&T, which has exclusive rights to the popular iPhone, despite pushing the Motorola Droid as an alternative during the holiday season.

But analysts speculate that AT&T may lose its exclusive hold on Apple's popular handset, and Verizon might sell a version of the device, later this year.

Regardless, competition between the two companies has heated up in recent months with a barrage of commercials accusing each other of misleading viewers with TV ads.

Last week, Verizon slashed the price of its unlimited voice service to $70 a month from $100. AT&T quickly followed suit.

Source: (www.mobiledia.com)