Spectrum lost 61,000 internet customers in the fourth quarter, even as the wireless carrier boasts significant growth in 5G home internet services. But Christopher Winfrey, CEO of Spectrum’s parent company, Charter Communications, doesn’t seem too fazed.
“We continue to believe that the impact from fixed wireless is temporary,” Winfrey told analysts on Friday’s fourth-quarter results conference call, before further casting a shadow on 5G home internet. I threw it. “Our Internet products are faster and more reliable.”
The comments come as 5G home internet continues to erode cable’s share as cord-cutting 2.0 takes hold. While all carriers boast strong subscriber growth from so-called fixed wireless access, his T-Mobile in particular will almost certainly outpace the rest of the broadband industry combined. He added 541,000 customers during this period, more than double his still impressive 231,000 customer increase at Verizon. Consumers are attracted to the simple pricing plans and easy installation of 5G home internet.
Winfrey acknowledged that spectrum is being hurt by “more relentless competition from fixed wireless.” He also pointed to the threat from “overbuilders” like Frontier Communications, or wireline companies moving into other areas.
But he argued that Spectrum’s plans are actually more competitive when bundled with discounted mobile plans. He said only 13% of its customer base had a mobile account with the company, indicating a potential turnaround.
He has repeatedly criticized the quality of 5G home internet service, calling it another form of DSL. He called it “an inferior product with limited capacity and often sold at prices that consumers perceive as low prices,” he said Friday.
Winfrey said that while the threat of 5G home internet is undeniable, she expects a return to more normalized internet growth over time.
