Telecom giant, Verizon Communications has said that it has recorded an impressive 40 per cent rise in profits during the third quarter of the year backed by strong wireless growth.

The growth of 40 per cent was higher than expected by analysts for the quarter. Even as the company recorded a low than expected growth in wireless customers, its venture with Vodafone Group, Verizon Wireless recorded stronger performance with higher profit and increasing revenue as customers increased their usage of the data.

Leading American telecom carrier, Verizon said that it has agreed to 45 per cent stake in Verizon Wireless to take control of the venture. Following the deal, the company will be able to fully incorporate all of its profit instead of relying on dividends. The deal will allow Verizon to have a complete control over its wireless business including profit as advertisers, content distributors and wireless carriers move to smartphones and increase usage of mobile data and information services.

Verizon's chief financial officer, Francis J. Shammo has said that the shortfall of Apple's new iPhone 5S was caused a shortfall in the number of subscribers. Verizon Wireless added 927,000 net retail subscribers in the quarter compared to an expectation of one million.