Comcast takes drastic action as customers rapidly cut service
Comcast () , which operates internet, phone, and cable services under the name Xfinity, continues to see a startling change in customer behavior that appears to be growing legs, and the company is taking drastic measures to reverse the trend.
In Comcast's second-quarter earnings report for 2025, it revealed that it lost about 226,000 internet customers during the quarter, which is almost 88% higher than the number of internet customers it lost during the same quarter last year.
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The loss comes after Comcast announced in December its plan to raise prices for Xfinity services this year. The company said 'strategic investments' were needed to make its network 'smarter, faster and more reliable,' which angered customers.It also recently decreased Xfinity's monthly autopay discount from $5 to $2 for customers who use credit and debit cards to pay their bills.
Earlier this year, Comcast tried to lessen the blow of price hikes by rolling out a five-year price lock guarantee for Xfinity plans, but customers continue to cut the cord on internet services in large numbers.
Comcast sounds alarm on a major threat
During an earnings call on July 31, Comcast revealed that it saw a slight uptick in the number of customers whose service was cut off due to nonpayment during the quarter.
Also, Comcast Chief Financial Officer Jason Armstrong said during the call that the 'competitive environment' the company operates in 'remains intense.'
'Fixed wireless remains very active in the marketplace,' said Armstrong. 'Fiber competitors continue to build more capacity.'
Comcast is currently facing increased competition from AT&T, Verizon, and T-Mobile, which all offer fixed wireless internet. This service provides internet access to remote or underserved areas at prices that are usually lower than traditional internet services.During the second quarter of this year, AT&T, Verizon, and T-Mobile collectively added about 932,000 new 5G home internet customers.
According to a recent survey from Cord Cutters News, now, only about 40% of consumers rely on cable TV companies for their internet service, a significant decline from 45% in late 2024. Also, roughly 11% rely on 5G home internet, an increase from 8.4% just a year ago.
It is no surprise that many consumers are rapidly making the switch to fixed wireless internet, as a recent survey from CNET found that 63% of U.S. adults saw the monthly price of their home internet service increase last year. On average, they paid $195 more for internet service in 2024 than in 2023.
As more consumers look for cheaper internet options, one of Comcast's main competitors, Spectrum, also lost about 117,000 internet customers during the second quarter this year.
Comcast highlights plan to attract and retain customers
To combat this major shift in customer behavior, Comcast CEO Michael Cavanagh said the company has 'realigned' its pricing strategy during the quarter around seven main changes.
First, it moved local offers 'to a consistent national pricing structure.' Second, Comcast simplified its broadband offers with four flagship speed tiers.
Third, it added unlimited data and boosted speeds to its internet packages. Fourth, it lowered 'everyday pricing.' Fifth, it introduced one-year and five-year price lock guarantees to its internet plans without contracts.
Sixth, it now offers a free Xfinity mobile line for one year for all new and existing internet customers. Last, it recently introduced its premium unlimited mobile plan, which includes 4K Ultra HD streaming and other features.
More Telecom News:
Verizon's push to make switching harder for customers hits a snag
T-Mobile announces generous offer for conflicted customers
Amazon pulls the plug on a free service for customers
'Our goal for all the actions we've taken is to build a loyal customer base that churns less and values our services more by: one, delivering simple, predictable and transparent pricing; and two, making it easier than ever to do business with us,' said Cavanagh.
He also said that the company has upgraded its operating system, which manages its customer interactions, to Google's AI platform. Comcast hopes this change will help it provide quicker support for customers.
Cavanagh claims that customers are already responding positively to these recent changes.
'Customers are responding to the simplicity and power of these changes with roughly half of our eligible new customer connects choosing our five-year price guarantee this quarter,' said Cavanagh. 'We also posted a 20% increase in the percentage of new customers taking gig plus speeds.'Comcast takes drastic action as customers rapidly cut service first appeared on TheStreet on Aug 2, 2025
This story was originally reported by TheStreet on Aug 2, 2025, where it first appeared.
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