Cheap home internet from T-Mobile and Verizon is here, and it’s already threatening the cable giants.
By Jared Newman, August 30, 2022, 5 minute Read
For years, Comcast and other cable companies have leaned on a simple strategy to offset the effects of cord-cutting: Charge a steep price on home internet service, and enjoy soaring profits thanks to little or no competition.
That strategy may now be in jeopardy. Comcast’s internet subscriber growth was essentially flat last quarter, while Charter lost 21,000 Spectrum internet subscribers. For both companies, it’s the first time they’ve failed to grow their home internet businesses in a given quarter.
The reason isn’t a mystery, either: All around the country, T-Mobile and Verizon have been rolling out cheap home internet service powered by their 5G networks, at last giving customers an alternative where none previously existed.
In an earnings call, Comcast CEO Brian Roberts pointed to those carriers as a reason its broadband growth has hit a wall.