Unlimited service helps Verizon top expectations for the second quarter
Verizon also did better than the Street expected with its reported churn rate of .94% for the period. That matched the number announced during last year's Q2 and was markedly better than the 1.1% that Wall Street analysts were looking for. The carrier now has 114.5 million wireless retail customers, up from 113.2 million last year and 113.9 million last quarter.
After a five-year absence, Verizon brought back a regular unlimited data plan on February 13th, following heavy promotion of unlimited service by rivals T-Mobile and Sprint. But true to its standing as the "premium" stateside wireless operator, Verizon's unlimited plan is more expensive than the competition. One line of Verizon unlimited is $80 a month. Two lines cost $140 monthly while three and four lines are priced at $160 and $180 a month, respectively. Verizon Chief Financial Officer Matthew Ellis said that "even with the price premium we have, it shows that customers value the high-quality network experience that we deliver."
Investors love the report as Verizon's shares are up $3.37 or 7.6% to $47.78 this afternoon.