Verizon Communications Inc. met expectations for fourth-quarter earnings thanks to wireless-phone subscriber gains and sought to douse concerns a slowing economy is hurting its business.

Verizon added nearly 1.9 million net retail wireless customers in the quarter, better than most analyst estimates. The results, which came days after AT&T Inc. also reported robust wireless growth, may ease worries a slowing economy will force consumers to curtail cellphone spending.

Verizon said that overall, it isn’t seeing a dent from a slower economy, seeking to distance itself from AT&T, which has said its landline and Internet-access businesses were experiencing limited pain from economic woes.

“I would say that we have not seen a change in sales expectations through January,” Verizon Chief Financial Officer Doreen Toben said in a conference call Monday with investors. “We are very confident in our outlook for 2008 and the ability to deliver strong results and create shareowner value.”

Verizon Wireless, a joint venture with Vodafone Group PLC, saw revenue increase 13% to $11.44 billion. Total churn - or customer cancellation rate – edged up to 1.2% versus 1.14% a year earlier. The company added a total of two million net new customers, leaving it with 65.7 million subscribers. AT&T has 70.1 million wireless customers, after adding a net 2.7 million new customers in the fourth quarter.

There were soft spots in the quarter. Verizon’s gains in high-speed Internet access were weaker than expectations. The company also posted lower revenue that many estimated for its landline business.

In the fourth quarter, Verizon posted net income of $1.07 billion, or 37 cents a share, up from $1.03 billion, or 35 cents a share, a year earlier. Excluding items, including 16 cents a share in restructuring charges and a divestiture gain of 27 cents a share, earnings from continuing operations rose to 62 cents a share from 52 cents a share. Revenue increased 5.5% to $23.84 billion.

Broadband connections stood at 8.2 million as of Dec. 31, up 18% from a year earlier, helped by the FiOS fiber network. Sales of wireless and Internet services have helped phone companies like Verizon and AT&T ease the impact of declining sales of fixed lines.

Still, FiOS gains in the quarter may come as a disappointment. Spending on FiOS diluted earnings by nine cents a share in the quarter, Verizon said, more than many expected. Verizon added 226,000 FiOS TV subscribers, taking the total to 943,000 at year-end. Subscribership has now topped one million, the company said.

Verizon is using FiOS as its weapon to fight back cable-television operators, which also offer the all-in-one packages of video, phone and Internet services.

Looking ahead, Verizon said it expects wireless service margins of 43% to 45% in earnings before interest, taxes, depreciation and amortization. The company said its goal is to expand wireline Ebitda margins to between 30% and 33%.

In capital spending, Verizon said it’s on target for spending levels to be below the $17.5 billion for 2007. Verizon also said it has room to cut costs, including in its work force.

Verizon said it repurchased more than $1.1 billion of its stock during the quarter. Ms. Toben said the company “will continue to be buyers of our stock” at current share prices.