The news brought a share price rally in the wireless sector. Shares in Verizon Wireless’ co-owners Verizon Communications and Vodafone were up 5.7% and 4.4% respectively, while shares in operators Nextel and Sprint PCS also rose.
A driver behind the company’s success was its recognition that US mobile telecoms is becoming a volume market. Verizon Wireless cut its deposit requirement for low-end customers from $500 to just $100, and brought in significant sales through a joint venture with cut-price electronics retailer RadioShack.
However, CEO and president Dennis Strigl says that Verizon Wireless hasn’t had to compromise on financial performance to win over the new customers. According to Mr Strigl, the company has combined strong subscriber growth with positive financial results. These figures are due out later in the week.
