Verizon Wireless’ profits have come under pressure in the current quarter thanks to discount offers, together with strong customer volumes, its parent said.

US operators are battling for customers with rival promotions and price cuts, and Verizon’s statement confirms their impact on the bottom line.

It reported strong momentum behind wireless customer growth in the quarter. The operator pointed to “very strong” demand for 4G smartphones and tablets on its shared data plans.

And retail postpaid gross additions are higher both sequentially and year-on-year, it said.

Launches of new devices are driving significant subscriber upgrades, which are on target to account for as much as 9.5 per cent of the postpaid base by the end of this quarter.

However, as the operator accelerates the 4G upgrade process, it’s seeing a rise in total retail postpaid disconnections, both sequentially and on a year-on-year basis, it said.

As a result, the company noted in a statement that Q4 will see “short-term pressure on its wireless segment EBITDA and EBITDA service margin (non-GAAP, based on earnings before interest, taxes, depreciation and amortisation) as well as its consolidated EBITDA margin (non-GAAP) and earnings per share.”

Verizon will report fourth-quarter 2014 results on January 22.