Sign up to myFT Daily Digest to be the first to know about Companies news.
US mobile phone carriers are reporting strong second-quarter subscriber growth, underscoring the dynamism of the US wireless telecommunications market.
Verizon Wireless, the joint venture owned by Verizon Communications of the US and the UK’s Vodafone, on Monday reported it added 1.82m net new customers in the latest quarter, ahead of analysts’ expectations.
Last week Cingular Wireless, the joint venture between AT&T and BellSouth, reported 1.5m net customer additions, a performance that helped BellSouth, the third-largest US telecommunications group that is being acquired by AT&T, report solid second-quarter earnings yesterday.
Verizon Wireless said all net subscriber gains came from the retail segment.
The figures also imply that the carrier is taking market share from T-Mobile USA, the US wireless carrier owned by Deutsche Telekom, and Sprint Nextel, which has been focused on integrating the Sprint and Nextel networks following Sprint’s acquisition of Nextel last year.
Verizon Wireless, which has been battling with Cingular to regain the title of the largest US wireless carrier following Cingular’s purchase of AT&T Wireless 18 months ago, said its net customer additions exceeded 1.5m for the eighth consecutive quarter.
Meanwhile, BellSouth said its second-quarter profit increased 12 per cent as more customers signed up to its broadband internet services, and it benefited from Cingular’s continuing strong performance. Net income increased to $887m, or 49 cents a share, from $795m for the same period last year. Revenues edged up 1.2 per cent to $5.21bn
Get alerts on Companies when a new story is published