Verizon ( VZ) fans are hoping there's more life to the recent telecom rally.The New York phone giant is set to report second-quarter earnings before trading begins Tuesday. And with the wireless business already showing gangbuster subscriber growth, the prospect for a solid performance looks good, say investors. Verizon shares rose 6% last week as Wall Street cheered the better-than-expected wireless numbers from the Verizon Wireless venture with Vodafone ( VOD). Now investors are looking for more details about the quarter, particularly an update on customer loyalty and the size of the average mobile-phone bill. Family plans that offer one bill for two or more phones have been a success with telcos, helping to keep more customers in the fold. But the plans' lower prices are turning into a bit of a drag on average revenue per user, or ARPU. Analyst Dave Barden with Bank of America expects second-quarter ARPU to fall about 1% from year-ago levels. But Verizon's monthly defection rate, or churn, will probably remain low at about 1.2%, he says in a research note. "We believe the lower churn associated with family plan subscribers is a healthy tradeoff for long-term benefits," wrote Barden, who has a buy rating on the stock. On the conventional telephone side, costs are among the top concerns. The other Bells -- AT&T ( T) and BellSouth ( BLS) -- made a good showing last week by simultaneously cutting costs while continuing a fiber-optic and wireless expansion. Investors shrugged off AT&T's 6% year-over-year total phone-line decline, largely because the San Antonio phone shop said pension costs were coming down and spending on Project Lightspeed IP-TV would be pushed out toward the end of the year. Similarly, Verizon may have taken a break on spending as it waited for some newer-generation networking gear. The wireless unit is preparing to add broadband equipment known as evolution data-only Rev. A. Meanwhile, Verizon recently awarded contracts for a fiber-optic equipment upgrade called gigabit passive optical network, or GPON, to be used in its fiber-to-the-home efforts. The opportunity is there for Verizon to lower its spending plan for the year, says one investor. While that would add to the bad news already hammering suppliers like Lucent ( LU), Tellabs ( TLAB) and Nortel ( NT), Verizon bulls say they don't care "as long as the financials are intact." Analysts are looking for Verizon to make an adjusted second-quarter profit of 62 cents a share on $22.8 billion in sales.