VERIZON INCREASES CELL BILLS 7.1% FOR $95.MILLION CUSTOMERS

VERIZON

Verizon didn’t sign up as many new cell phone customers in the third quarter as Wall Street expected — but it still earned more than forecast as it managed to increase the average bill of its 95.2 million wireless customers by 7.1 percent.
The average Verizon Wireless bill jumped to $155.75 a month as of Sept. 30 from $154.63 last year, the company said Thursday.

Verizon, the No. 1 wireless carrier, said its ability to ratchet up customers’ bills fattened operating profit margins to 33.8 percent from 31.8 percent last year.

Verizon Wireless added 927,000 customers in the three-month period, slightly less than the 1 million Wall Street was expecting — but that doesn’t seem to have scared away investors.

Shares of Verizon are up 3.2 percent at 10:20 a.m., to $48.90.
In addition, Verizon said Thursday:

• Two out of three customers are now using smartphones
• iPhone sales made up 51 percent of all Verizon Wireless sales in the third quarter
• Phone subsidies, which allow customers to pay $200 for a $500 or a $600 phone with a two-year contract, will come down over 2-to-3 years. That means it will cost customers more out of pocket when getting a new phone.