Comcast and Charter face a grim new reality: actual competition

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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. It’s a rude awakening for cable companies, whose broadband monopolies in many markets have allowed them to raise prices—and, in Comcast’s case, enforce data caps. While Comcast and Charter have tried to downplay the threat posed by wireless home internet, experts say the competition is here to stay. For broadband consumers, this means a cheaper alternative to cable internet and, ultimately, the return of choice. 


Comcast and Charter face a grim new reality: actual competition