verizon communications inc

Verizon Communications Inc. and two unions representing 65,000 workers who had threatened to strike within hours agreed Sunday on a new three-year contract that provides 10.5 percent wage increases and changes in retirement benefits.

The pact, which must be ratified by union members, was hailed as a 'breakthrough agreement in many ways' by Communications Workers of America President Larry Cohen.

The deal 'provides a framework for growth at Verizon and a good standard of living with careers for our members,' Cohen said.

Verizon Communications Inc. and two unions representing 65,000 workers are still talking contracts, one day ahead of a deadline for a possible strike.

Verizon Communications Inc.'s first-quarter earnings rose 9.8 percent as its wireless division attracted more customers than other carriers.

The country's second-largest telecommunications company earned $1.64 billion, or 57 cents per share, in the quarter that ended March 31, compared with $1.50 billion, or 51 cents per share, a year ago.

Revenue rose 5.5 percent to $23.8 billion from $22.6 billion.

"We are evaluating our legal options at the federal level and will continue to pursue our complaints with state public utility commissions."

By Peter Kaplan

WASHINGTON (Reuters) - Staff at the Federal Communications Commission are expected to recommend that it review rules on how phone and cable companies can use customer information as they try to take business from each other, an FCC official said on Friday.