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Verizon Wireless reported roughly 40 percent growth in retail postpaid subscriber additions in the third quarter, its top executive said Thursday, but the gains and low adoption rate in an early upgrade plan are expected to weigh on margins. Verizon Wireless added 927,000 retail subscribers on contract in the year-ago period.
During an investor conference in New York, Verizon CEO Lowell McAdam also disclosed the company intends to introduce an Internet-based television service in the first half of 2015, Reuters reported. In January, Verizon announced an agreement to purchase from Intel assets of a business division concentrating on the development of cloud TV. Verizon said the deal would accelerate the availability of video services that are integrated with its fiber-optic FiOS networks and delivered “over the top” to any device such as a smartphone.
An Internet-based TV offering could make Verizon’s wireless service more attractive amid the availability of an increasing number of web-based video services, led by Netflix whose U.S. subscriber base now totals 36.2 million. Netflix’s subscriber base is just a fraction of the size of Verizon Wireless’ retail connections (104.6 million as of the second quarter).
New York-based Verizon will report its third-quarter results on Tuesday, Oct. 21. The telecom giant said FiOS continues to drive consumer revenue expansion in its wireline division while growth in its enterprise and wholesale businesses remains under pressure. As of the end of the second quarter, Verizon served 6.3 million FiOS Internet and 5.4 million FiOS video connections.