Comcast Customer Exodus: Why Unlimited Data Isn't Enough?

Comcast, one of the largest cable and internet providers in the US, is facing a significant challenge: a steady decline in broadband subscribers. Despite recent efforts to improve customer experience and offer unlimited data plans, the company continues to lose customers to competitors like fiber optic providers and fixed wireless services. In April 2025, Comcast President Mike Cavanagh acknowledged the company was “not winning in the marketplace,” signaling a growing concern within the organization. This article delves into the reasons behind Comcast’s subscriber losses, analyzes their recent strategies, and explores the future outlook for the company in an increasingly competitive landscape.

The Bleeding Continues: Q4 2025 Subscriber Losses

Comcast’s Q4 2025 earnings report revealed a net loss of 181,000 residential and business broadband customers in the US. This figure comprises 178,000 residential internet customers and 3,000 business customers. While slightly better than the 199,000-customer loss that prompted Cavanagh’s earlier statement, it’s a worsening trend. The Q4 loss surpasses the 139,000 loss in Q4 2024 and the 34,000 loss in Q4 2023, demonstrating a clear acceleration in customer churn.

According to Comcast CFO Jason Armstrong, “Subscriber losses were 181,000, as the early traction we are seeing from our new initiatives was more than offset by continued competitive intensity.” This highlights a critical issue: even with improvements, Comcast is struggling to retain customers against aggressive competition.

Shrinking Subscriber Base & Slow Revenue Growth

As of Q4 2025, Comcast’s residential broadband customer base has dropped to 28.72 million, while business broadband customers stand at 2.54 million, totaling 31.26 million. The company is experiencing a contraction in its core business.

Average revenue per user (ARPU) saw a modest increase of 1.1 percent. Armstrong attributed this slow growth to “new go-to-market pricing, including lower everyday pricing and strong adoption of free wireless lines.” He anticipates this slow growth will continue “for the next couple of quarters,” influenced by the absence of rate increases, the impact of free wireless offerings, and a shift towards simplified pricing plans.

The Competitive Landscape: Fiber and Fixed Wireless

Comcast Connectivity & Platforms chief Steve Croney emphasized the intensifying competition, particularly from fiber optic providers. “The market is going to remain intensely competitive,” he stated, acknowledging the growing threat posed by companies investing heavily in fiber infrastructure. Fixed wireless access (FWA) is also continuing to chip away at Comcast’s market share, offering a compelling alternative in areas where fiber deployment is limited.

The Rise of Fiber Optic Internet

• Superior Speed & Reliability: Fiber offers significantly faster and more reliable internet speeds compared to traditional cable.
• Growing Availability: Fiber infrastructure is expanding rapidly, reaching more households and businesses.
• Competitive Pricing: Fiber providers are often offering competitive pricing packages to attract customers.

Fixed Wireless Access (FWA) as a Disruptor

• Faster Deployment: FWA can be deployed more quickly and cost-effectively than fiber.
• Rural Reach: FWA is particularly attractive in rural areas where cable and fiber infrastructure are limited.
• Increasing Speeds: Advances in 5G technology are enabling FWA providers to offer increasingly competitive speeds.

Comcast’s Response: A Shift in Strategy

Recognizing the need for change, Comcast has undertaken what Cavanagh described as “the most significant go-to-market shift in our company’s history.” This shift focuses on simplifying broadband offerings, moving away from short-term promotions towards a “clear, transparent value proposition.” Key initiatives include:

• Five-Year Price Guarantee: Providing price stability to attract and retain customers.
• Free Xfinity Mobile Service: Bundling internet and mobile services to increase customer value.
• Unlimited Data Plans: Eliminating data caps and providing peace of mind to users.

However, these changes haven’t been enough to stem the tide of customer losses. More significant changes are planned for 2026, with a focus on customer experience and simplification. Cavanagh stated that 2026 will be “the largest broadband investment year in our history,” aiming to migrate the majority of residential broadband customers to the new simplified pricing and packaging by year-end.

Financial Performance: A Mixed Bag

While broadband revenue declined to $6.32 billion (down from $6.38 billion a year ago), and cable TV revenue also decreased to $6.36 billion (down from $6.74 billion year-over-year), Comcast saw growth in its mobile revenue, which rose from $1.19 billion to $1.40 billion. This growth was fueled by the addition of 1.5 million new mobile lines during 2025, bringing the total to over 9 million.

The Peacock streaming service also contributed positively to Comcast’s overall performance. Peacock paid subscribers increased 22 percent year-over-year to 44 million, with revenue growing 23 percent to $1.6 billion in the quarter. This demonstrates the potential of Comcast’s content and streaming offerings to offset declines in its traditional businesses.

Total Q4 2025 revenue was $32.31 billion, up 1.2 percent year-over-year. However, net income fell significantly to $2.17 billion, a 54.6 percent drop compared to the $4.78 billion profit in Q4 2024. Comcast attributed this decline to an unfavorable comparison with the prior year, which included a substantial tax benefit.

Charter Communications: A Similar Story

Comcast isn’t alone in facing these challenges. Charter Communications, another major US cable company, is scheduled to announce its Q4 2025 earnings soon. In Q3 2025, Charter reported a loss of 109,000 internet customers, slightly more than Comcast’s loss of 104,000 in the same quarter. Charter currently has 27.76 million residential internet customers and 2.03 million small business internet customers. The industry-wide trend suggests a broader shift in consumer preferences and increased competition.

Looking Ahead: What’s Next for Comcast?

Comcast faces a critical juncture. Simply offering unlimited data isn’t enough to retain customers in a market where faster, more reliable, and often more affordable alternatives are readily available. The company’s success hinges on its ability to:

• Accelerate Fiber Deployment: Investing in fiber infrastructure is crucial to compete with fiber optic providers.
• Enhance Customer Experience: Addressing long-standing complaints about pricing transparency and customer service is paramount.
• Leverage Bundling Opportunities: Effectively bundling internet and mobile services can increase customer value and reduce churn.
• Continue Investing in Streaming: Peacock’s growth demonstrates the potential of content and streaming to drive revenue and attract customers.

The coming years will be pivotal for Comcast. The company’s ability to adapt to the changing market dynamics and deliver a compelling value proposition will determine its long-term success. The pressure from competitors like Verizon, AT&T, and T-Mobile, along with the rise of FWA, will continue to intensify, demanding a proactive and innovative approach from Comcast to avoid further customer exodus. The focus on customer experience and simplification in 2026 will be a key test of their commitment to regaining market share. GearTech will continue to monitor Comcast’s progress and provide updates on this evolving situation.