Verizon reported a net loss of 127,000 post-paid phone users in Q1 as 136,000 additions by its business unit failed to offset a decline of 263,000 at its consumer division, but fixed wireless access (FWA) was a bright spot.

The operator also reported a loss of 351,000 prepaid mobile customers, which CEO Hans Vestberg (pictured) stated on an earnings call was due to users leaving SafeLink, Verizon’s brand which provides services to people on government-subsidised programmes.

“Prepaid is an important part of our value segments strategy and our investment here will continue as we’re confident that it will pay off in the long term.”

Outgoing CFO Matt Ellis said Verizon expected pressure on prepaid net additions to increase in Q2 then “abate later in the year”.

Total wireless service revenue rose 3 per cent year-on-year to $18.9 billion, but Verizon stated a closure of its 3G network in Q4 2022 resulted in the loss of 1.1 million retail connections and related revenue in Q1.

The operator added 393,000 FWA subscribers compared with 194,000, for a total of 1.9 million.

Vestberg noted C-Band spectrum due to become available in December will enable Verizon to expand 5G FWA coverage and create a device upgrade cycle due to improved data rates.

“C-Band so far is deployed mainly in in urban and suburban areas whereas the majority of the spectrum coming is actually in the more suburban or rural” areas.

Net profit rose 6.5 per cent to $5 billion with revenue down 1.9 per cent to $32.9 billion.