Verizon, however, isn't out of the woods when it comes to concerns to margins.
The prospect of revived competitors could pressure the company's rising average revenue per user and account. Meanwhile, it's unclear whether current premium pricing can be sustained or rise further over the long-term.
Verizon's earnings come amid a frenzy of merger activity in the telecom sector that raises the prospect cost-competitive industry laggards Sprint (S), T-Mobile and MetroPCS (PCS) could revive their competitiveness.
In 2012, the weakness of Sprint and T-Mobile helped both Verizon and AT&T (T) consistently pick up new subscribers and increase smartphone market share."Last year, postpaid subscriber losses at Sprint and T-Mobile equated to some 50% of postpaid net adds at Verizon and AT&T," Simon Flannery, a Morgan Stanley telecoms analyst, wrote in an April 17 note to clients. "We believe that this trend may be peaking, and that consensus may be too optimistic on 2013 subscriber growth
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