Verizon adds 1.3 million new customers!

http://biz.yahoo.com/rc/031028/telec...ireless_4.html

Reuters
UPDATE - Verizon Wireless revenue jumps 18 percent
Tuesday October 28, 10:34 am ET
By Yukari Iwatani


(Adds more details, analyst comment)
CHICAGO, Oct 28 (Reuters) - Verizon Wireless, the largest U.S. wireless
telephone company, increased quarterly revenue by 18 percent as it led
rivals in adding new customers, one of its parent companies said on Tuesday.


Verizon Wireless added 1.3 million customers, finishing the third quarter
with a total of 36 million, according to Verizon Communications (NYSE:VZ -
News), which jointly owns the company with Britain's Vodafone Group Plc
(London:VOD.L - News).

"Verizon Wireless again stole the show," said Patrick Comack (News) ,
telecommunications analyst with Guzman & Co..

Nextel Communications Inc. (NasdaqNM:NXTL - News), the nation's
fifth-largest wireless operator, kicked off the quarterly earnings season
with strong results, but analysts were disappointed by No. 3 AT&T Wireless
Services Inc. (NYSE:AWE - News) and No. 4 Sprint PCS Group (NYSE:PCS - News;
NYSE:FON - News), which both added fewer customers than expected.

Some analysts believe the industry is splintering as operators serving
high-end customers and low-end customers gain at the expense of other firms
caught in the middle.

"This maybe restores some confidence back in the (wireless) group that
there's a real differentiation among the top tier players than the rest of
the group," said Craig Mallitz, wireless analyst with Legg Mason.

Bedminster, New Jersey-based Verizon Wireless posted operating income of
$1.12 billion versus $970 million.

Total revenue, which includes sales of wireless services and equipment such
as cell phones, rose to $5.94 billion from $5.03 billion. Average monthly
revenue per customer rose slightly from a year ago to more than $50.

Verizon Wireless said data services now account for more than 2 percent of
its total service revenue. Revenue-generating data customers number nearly
10 million. It said its new walkie-talkie "push-to-talk" feature has more
than 100,000 customers to date since launching in August.

Analysts expect steadily increasing data revenue to help grow average
monthly revenue per user going forward.

"(Verizon Wireless is) definitely positioning themselves as one of the
leaders going into number portability," said Mallitz.

The number portability rule is expected to take effect on Nov. 24, requiring
companies to let customers keep their phone numbers when they change
services. The new regulation is expected to drive up customer turnover and
costs as it becomes easier for consumers to switch carriers.

Verizon Wireless said its customer turnover rate rose from the
second-quarter, but its cost per customer fell slightly.