Comcast Blunt On Steep Broadband Losses, Brian Roberts Says “Customer Pain Points” Being Addressed

Comcast president Mike Cavanagh did not sugar coat a steep loss in broadband subscribers last quarter, but came at it bluntly in opening remarks on a Q1 earnings call. “We are not winning in the marketplace in a way that is commensurate with the strength of the network and connectivity products.”

Fixes are in the works but will take several quarters, he said, as residential broadband customers fell by 183,000 to 29.2 million for the March quarter. The shares are down more than 7% in mid-morning trade.

Dave Watson, head of Connectivity & Platforms, and his team “have worked hard to understand the reasons for this disconnect and have identified two primary causes. One is price transparency and predictability and the other is the level of ease of doing business with us. The good news is that both are fixable and we are already underway with execution plans to address these challenges,” Cavanagh said.

Executives cited intense competition from wireless providers that offer broadband, and, by implication, may also offer more attractive pricing plans and some better customer service than Comcast. “The team has a sense of urgency … at getting customer pain points resolved,” said CEO Brian Roberts on the call. “While this may take a little time … Once we get in motion, we do it extremely well.”

Comcast recently promoted Steve Croney to COO of Connectivity & Platforms, and hired former Apple and Expedia executive Jon Gieselman to the new position of Chief Growth Officer of the domestic residential business to move things along.

The company has been “simplifying our pricing construct to make our price-to-value proposition clearer to consumers across all broadband segments, Cavanagh said, noting a first ever nationwide price guarantee for broadband that includes Xfinity and unlimited data for five years with no annual contract required and a premium unlimited Xfinity wireless plan.

“Providing more value to our customers with less complexity and friction is a top priority, and you will see our go-to market approach continue to evolve over the coming months,” he said. “And while we are glad to be underway with a refreshed approach to the market, we anticipate that it will take several quarters for a new approach to gain traction and impact the business in a meaningful way.”