U.S. telecom giant Comcast has warned that there will be broadband subscriber losses in the fourth-quarter due to competition from wireless providers and disruptions caused by two hurricanes in Florida.
Comcast expects broadband losses to exceed 100,000 in Q4 2024, significantly higher than analysts’ prediction of 64,400, according to Visible Alpha. Shares of Comcast dropped 8.3 percent following the announcement, while rival Charter Communications’ stock fell by 6.5 percent.
Hurricane Impact: About 10,000 losses are attributed to Hurricanes Milton and Helene, which disrupted businesses across Florida. However, the company noted this impact is less severe than the 26,000 losses caused by Hurricane Ian in 2022, Reuters news report said.
Dave Watson, Comcast Cable’s president and CEO, highlighted persistent challenges from wireless service providers like AT&T, Verizon, and T-Mobile, which are gaining market share with affordable, customizable offerings.
Additionally, the expiration of the federal Affordable Connectivity Program (ACP), which subsidized internet access for low-income households, has contributed to subscriber losses. Comcast reported a decline of 87,000 broadband customers in Q3 2024 due to the ACP’s conclusion but added 9,000 net subscribers when excluding the program’s impact.
Comcast acknowledged the competitive pressure in the price-sensitive segment of the market and its effect on growth.
