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Comcast’s leadership seems to have acknowledged an issue that has long been voiced by its users: the lack of clarity regarding pricing and the frequency of rate increases. This realization comes amid struggles in retaining subscribers, with the company reporting a loss of 183,000 residential broadband customers in the first quarter of 2025. During an earnings call, Comcast President Mike Cavanagh candidly admitted that the company is “not winning in the marketplace,” highlighting a stark increase in customer loss compared to the previous year’s figures.
The slowing subscriber growth can be attributed to the competitive nature of the broadband industry, where Comcast now contends with a growing number of fiber-optic and fixed wireless Internet Service Providers (ISPs). “In this intensely competitive environment,” Cavanagh noted, the company recognizes that its performance does not align with the caliber of its network offerings. He further explained that Comcast’s management has identified two main hurdles: the need for more transparent pricing and a more seamless customer service experience. “The good news is that both are fixable, and we are already underway with execution plans to address these challenges,” he stated.
Following the recent subscriber decline, Comcast’s residential Internet customer base has dwindled to approximately 29.19 million. Additionally, the company experienced a drop of 17,000 in business broadband subscribers, bringing that total to around 2.45 million. Despite these losses, Comcast’s financial performance showed profitability, with shares falling by 3.7 percent, even as it reported a 1.7 percent increase in domestic broadband revenue year over year, totaling $6.56 billion. This indicates that while the subscriber count declines, the company is successfully increasing the average revenue per customer. Analysts raised numerous questions regarding Comcast’s Xfinity-branded services and the company’s future strategies during the earnings call, as reported by CNBC.
Improving Transparency in Pricing
Cavanagh assured stakeholders that addressing pricing structure and customer experience is a top priority. He emphasized that Comcast is initiating changes “with the highest urgency,” focusing on streamlining their pricing models to present a clearer value proposition to consumers across all broadband segments.
Last week, Comcast unveiled a new initiative offering a five-year price guarantee for new broadband customers. This package is marketed with a “simple monthly price starting as low as $55,” without the need for a long-term contract, allowing users the flexibility to cancel anytime without incurring a penalty. Additionally, customers who sign up will receive one year of Xfinity Mobile service at no extra cost.
Source
arstechnica.com