Comcast is facing significant challenges in retaining its broadband customers, reporting a net loss of 183,000 residential broadband subscribers in the first quarter of 2025. This loss marks a sharp increase compared to the 56,000 net loss reported in the same period of 2024. As a result, the company’s total residential internet subscribers have dropped to 29.19 million. Additionally, Comcast saw a decline of 17,000 business broadband customers, bringing the total for this category to 2.45 million.
The company’s struggles are happening in an increasingly competitive broadband market, where Comcast faces growing competition from fiber and fixed wireless ISPs. Despite these challenges, Comcast President Mike Cavanagh acknowledged that the company’s performance is not meeting expectations. “We are not winning in the marketplace,” Cavanagh admitted during a recent earnings call. He pointed to pricing transparency and the ease of doing business with Comcast as primary issues contributing to the company’s customer losses.
Addressing Pricing Transparency and Customer Experience
Cavanagh noted that two main factors have led to the current situation: a lack of price transparency and unpredictability in costs. He emphasized that these issues, while contributing to customer dissatisfaction, are fixable. Comcast has already begun implementing changes to improve its pricing structure and overall customer experience.
One of the key measures announced by the company is the introduction of a five-year price guarantee for new broadband customers. This initiative promises a clear, simple monthly rate starting at $55 per month, without the need for a contract. In addition, new customers will receive a year of Xfinity Mobile service at no charge. However, the deal comes with the fine print, noting that taxes and fees may still vary during the five-year period. Cavanagh confirmed that the company is committed to simplifying its pricing and making the price-to-value proposition clearer to consumers.
Challenges Beyond Broadband and Future Outlook
While Comcast is focused on addressing the broadband losses, the company is also exploring growth in other areas, particularly in mobile services. In the first quarter, Comcast added 323,000 mobile lines, boosting its total to 8.15 million. The company has been bundling its mobile offerings with home internet to attract more customers. However, Comcast’s video division continues to see a decline, losing 427,000 video customers in Q1, which brings the total number of video subscribers to 12.1 million.
In terms of addressing pricing issues, Cavanagh acknowledged the company’s longstanding problems with unexpected price hikes, particularly in its cable TV services. Customers have frequently complained about additional charges such as Broadcast TV and Regional Sports Network fees, which have significantly inflated the final bill beyond the advertised price. While the Federal Communications Commission (FCC) had previously voted to require cable companies to advertise “all-in” prices, this rule may be eliminated under new leadership at the FCC, which could further complicate Comcast’s efforts to improve pricing transparency.
Looking ahead, Cavanagh warned that it would take several quarters for Comcast’s new approach to show meaningful results. While the company is focused on regaining customer trust and streamlining its services, it remains to be seen whether these changes will be enough to turn around the negative trends in broadband and video subscriptions.
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