Verizon Reports Higher Profit During a Price-Cutting War

Amid a price-cutting war in the American wireless industry, the Verizon juggernaut keeps growing, even though its prices are generally higher.

Verizon Communications said it had added about 1.5 million new wireless customers. Most of those new customers were tablet owners signing up for Verizon’s data plans. The company reported third-quarter earnings of 89 cents a share on revenue of $31.6 billion, just barely missing analyst expectations of 90 cents a share on revenue of $31.6 billion. Over all, Verizon reported profit of $3.7 billion, a sharp increase from the $2.2 billion in profit it reported in the quarter last year. In other words, while other carriers like Sprint and T-Mobile have been aggressively cutting prices to steal each other’s customers, Verizon, the No. 1 wireless phone carrier, has mostly stuck to its strategy of offering a superior wireless service for slightly higher prices. And Verizon has not only been unfazed by the price cuts. it continues to grow at a healthy rate.