Cable Giant Comcast Shifts Focus to Wireless Business Amid Slowing Broadband Growth
Comcast executives announced on Thursday that the company will shift its focus to its mobile business after reporting a loss of 139,000 residential broadband customers during the fourth quarter. The company’s broadband segment revenue remains stable, but Comcast, like its cable peers, has been experiencing a slowdown in customer growth, which has concerned investors in recent years.
Comcast’s decision to shift its strategy comes as the company faces intense competition from wireless providers like Verizon and T-Mobile, which are offering home broadband options. The company’s mobile business, Xfinity Mobile, has been growing consistently since its launch in 2017, with over 7.8 million mobile lines, or 12% penetration of its residential broadband customer base.
Comcast executives cited the rise of fixed wireless offerings from Verizon and T-Mobile as a major factor in the slowdown of broadband growth. The company’s CFO, Jason Armstrong, noted that fixed wireless and satellite companies will likely carve out a permanent part of the market, and that cable’s increasing broadband speeds are an advantage.
In response, Comcast is looking to mobile to both grow and maintain its customer base. The company will push to simplify its bundles, following the lead of Charter’s mobile and broadband offerings. Comcast will also continue to rely on its wireless network, as well as customers’ home broadband networks and Wi-Fi hotspots, to offer mobile service.
The shift in focus to wireless is seen as a key strategy for Comcast to drive revenue growth and reduce churn, or the loss of customers. The company’s mobile business has been a key driver of growth for Comcast and its cable peers, and the company is looking to continue this trend in the future.