Verizon Earnings Up 15 Percent, Adds 1.4 Million Subscribers

Verizon today reported a 15 percent earnings increase for the fourth quarter, as the shrinking economy did little to dampen consumer appetites for wireless services.

The No. 2 U.S. phone company earned $1.24 billion, up from $1.07 billion a year earlier.

Verizon Wireless added 1.4 million subscribers in the quarter, short of the 1.6 million new customers expected, but customers showed loyalty and the average price they paid rose slightly.

Of the new customers, 93 percent were on contracts with the company, meaning it has stayed aloof from the trend toward cheaper prepaid service.

Verizon Wireless ended the year with 72.1 million customers. But it closed its acquisition of rural wireless provider Alltel on Jan. 9, giving it more than 80 million customers and surpassing AT&T to become the biggest U.S. wireless provider in terms of subscribers.