U.S.-based Verizon Communications Inc.(NYSE:VZ) held on to its industry leader position in the June quarter according to the latest figures for telecommunications companies.
Verizon's wireless unit added about 1.2 million new subscribers of which about 0.88 million were on contract-based plans. That indicates an impressive showing in an industry which has very little room for growth with virtually everyone owning a cellphone.
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Verizon Wireless, which has 94.2 million retail subscribers, saw its average monthly fees from contract-subscribers rise 3.7 percent to $56.13, improving its profit margins for the quarter.
AT&T Inc.(NYSE:T), which reported a fall in smartphone sales in the quarter, said it activated 5.1 million smartphones down from 5.5 million a year earlier. This fall can be attributed to users holding onto their phones for a longer period of time. During the quarter the company added 0.32 million mew subscribers on contact-based plans, of which more than half were tablet users, who pay less than users of smartphones.
Both Verizon and AT&T saw a decline in activation of the iPhone, probably due to customers preferring to wait for the next generation iPhone which is due to hit the markets in mid-September.
Sprint Nextel Corporation(NYSE:S) activated 1.5 million iPhones during the quarter, as it lured subscribers with unlimited data services.
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Both MetroPCS Communications Inc(NYSE:PCS) and Frontier Communications Corp(NASDAQ:FTR) saw a decline in their subscriber-base.
Comcast Corporation(NASDAQ:CMCSA) and Time Warner Inc.(NYSE:TWX) added 158,000 customers and 45,000 residential phone customers respectively in the quarter.
U.S. Cellular Corp. lost 48,000 subscribers from contract-based plans in the quarter, though it gained 20,000 contract-free customers. The company ended the quarter with 5.8 million customers.