Comcast shifts strategy to mobile as fourth-quarter broadband numbers disappoint

Cable giant Comcast is looking to the wireless business for growth.

Comcast executives said Thursday the company will shift its focus to its mobile business after reporting a loss of 139,000 residential broadband customers during the fourth quarter.

Broadband has long been the growth engine of the cable industry especially after the exodus of cable TV customers. Although broadband segment revenue remains stable, Comcast, like its cable peers, has been in the midst of a slowdown in customer growth, which has concerned investors in recent years.

Shares of Comcast fell more than 12% in mid-morning trading Thursday.

Company executives said during Thursday's earnings call with investors that the company will shift its strategy to package mobile with broadband in a bid for more customers.

The stagnation stems from a number of factors, including primarily the rise of wireless providers like Verizon and T-Mobile offering home broadband options.

"In short, competitive conditions remain intense, dynamic and varied across our footprint and customer segments," said Comcast President Mike Cavanagh on Thursday's investor call. "And we see no signs of this changing in the near term."

In 2022, Comcast and fellow cable giant Charter Communications each reported their first quarterly decline in broadband subscriber growth.

Executives have cited reasons such as the slowdown in buying and selling of homes — noting there are fewer people signing up for cable when they get a new home — as well as a drop-off in additions following robust growth at the height of the Covid pandemic when lockdowns sent Americans home to work and learn.

But the rise of fixed wireless offerings from Verizon and T-Mobile has significantly ramped up competition. In December,