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Verizon Wireless CEO Dan Mead.
Verizon Wireless CEO Dan Mead.
(MARK LENNIHAN/AP)

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Verizon has drunk deep, but well of fortune running dry

Verizon has found the fountain of youth. The largest U.S. telecom company by subscribers reported on Tuesday that wireless revenue grew 8 per cent in 2012. How do sales grow at three times’ gross domestic product, and margins expand, in an industry that (given cellphone penetration) should behave like a utility? The answer is the smartphone. In 2012, Verizon added 5 million contract customers. The number of its customers who use smartphones, and therefore pay up for data services, rose by 15 million.