US wireless carrier Verizon Communications is experiencing a 25% decrease in profit as seen in their 3rd quarter report. Net income dived down to $881 million, or 31 cents a share, from $1.18 billion, or 41 cents a share from last year. Operating revenue falls from $27.26 billion the same quarter a year back to $26.48 billion this year.

“We are building momentum and are on track to achieve our goal of growing earnings in the second half of the year,” Ivan G. Seidenberg, chief executive of Verizon Communications, said in a statement. “We are excited by the opportunities we see to expand wireline margins and the growth we see related to the upcoming launch of next-generation wireless services.”

Though it still ranks as the largest wireless carrier in the US, it did not get as much new contract customers this quarter compared to its closest rival At&T, with 584,000 contracts and 745,000 contracts respectively. Verizon managed to stay on the top of the rank due to an increased total subscriber pool of 94.2 million, which 5% higher compared to the previous year.

Verizon says that the decline is caused by pension settlements subsequent to layoffs and voluntary separations.  But the wireless service industry as a whole seems to have taken a hit in Q3.  AT&T also saw drops in its 3rd quarter earnings.  The competition between these two networks is further highlighted by the lackluster performance during Q3.

Yet both companies remain hopful for next quarter, and the next fiscal year.  While AT&T is losing some business to Verizon, thanks to Apple’s decision to break iPhone and iPad exclusivity with AT&T, the company maintains that it does have a plan beyond Apple devices.  Verizon, on the other hand, has been building a powerful network with a wide range of devices, including Apple and Android smartphones and tablets.