The nation’s three largest carriers, T-Mobile, Verizon, and AT&T, combined to add about 840,000 5G home internet subscribers in the fourth quarter, validating Cord Cutting 2.0 and surpassing companies like Comcast and It poses a real threat to cable providers like Comcast. spectrum.
T-Mobile was the clear winner among the three companies, which released their fourth quarter results last week. T-Mobile added 541,000 customers during this period, while Verizon added less than half that number at 231,000. AT&T had the lowest number at 67,000, but it only really launched its service two quarters ago and hasn’t entered many markets yet.
When earnings season ends and we get the final tally of all quarterly reports, T-Mobile will almost certainly have more broadband customers than all the other companies combined. The company gained 4.8 million broadband customers at the end of the year and grew into a major ISP in just two years.
This is a remarkable result for 5G home internet services, which are becoming increasingly popular among consumers. Customers appreciate our simple pricing and easy setup process. For carriers, this service runs on excess wireless capacity and costs nothing extra to run. Charter and Comcast said they don’t see any threat from the service compared to DSL, but the numbers show a different picture.
On the same day that T-Mobile reported its earnings, Comcast also reported the loss of 34,000 broadband customers. This is his second consecutive quarter of declining subscribers. Charter Communications, which owns Spectrum, will report earnings this week, and Altice is expected to report results in late February.
The question is whether 5G home internet services can maintain its momentum. T-Mobile is growing rapidly, but CEO Mike Siebert has hinted at the possibility of raising prices. Earlier this month, it eliminated promotional pricing, effectively raising monthly fees from $10 to $60. Mr. Siebert said he would seek to “optimize” prices, but said he would see if the measures were accepted by consumers.
Verizon, which launched much earlier than T-Mobile, hasn’t seen similar success, but will likely continue to exploit this area for growth. Similarly, AT&T, which has been years late to the game, is only just starting to pick up steam.
This could mean added pressure for cable companies as more consumers gain access to 5G home internet.
