In this article, cable giant Comcast is shifting its focus to the wireless business for growth. The company reported a loss of 139,000 residential broadband customers in the fourth quarter, prompting executives to emphasize mobile business development. Broadband has traditionally been a key growth driver for the cable industry, but customer growth has slowed down, causing concern among investors. Comcast plans to bundle mobile services with broadband to attract more customers.
The slowdown in customer growth is attributed to factors such as increased competition from wireless providers like Verizon and T-Mobile, who offer home broadband options. Comcast President Mike Cavanagh highlighted the intense and dynamic competitive landscape during an investor call. Both Comcast and Charter Communications reported their first quarterly decline in broadband subscriber growth in 2022.
Reasons for the slowdown include fewer home sales leading to decreased cable sign-ups and a drop-off in new subscriptions following the peak growth during the Covid pandemic. The rise of fixed wireless offerings from Verizon and T-Mobile has intensified competition. Comcast acknowledges the competition from fixed wireless and the overbuilding of fiber internet.
Comcast is now focusing on mobile to expand and retain its customer base. The company sees wireless as an integral part of its broadband strategy and aims to leverage its position in the residential broadband market to grow in the larger U.S. wireless market. Comcast launched Xfinity Mobile in 2017, following Charter’s entry into the mobile market in 2018. Both companies have seen consistent gains in mobile lines since then.
Comcast’s mobile service relies on Verizon’s wireless network, customers’ home broadband networks, and Wi-Fi hotspots. The company believes that mobile offerings help reduce customer churn and drive revenue growth. Comcast plans to simplify its bundles to align with Charter’s mobile and broadband offerings. Charter recently made changes to its plans, including mobile bundles, to attract new subscribers.
