Spectrum revamps internet service as customers exit

Core Insights - Spectrum, owned by Charter Communications, is experiencing significant customer losses in its internet segment, with a reported loss of 119,000 customers in Q4 2025, contributing to a 0.5% revenue decline for the company in 2025 [1][6][11] Customer Loss and Market Challenges - The company has been losing internet customers consistently, attributed to price increases on older plans and rising competition from fixed wireless internet providers [2][3][5] - A survey indicated that 75% of Americans have considered switching providers due to high prices, reflecting widespread dissatisfaction with internet costs [4] Competitive Landscape - The competitive environment is intensifying, with fixed wireless internet services from carriers like T-Mobile, Verizon, and AT&T posing a significant threat to traditional providers like Spectrum [5][7] - Charter's CEO noted that pressures from the housing market and increased competition are hindering customer acquisition efforts [7][8] Strategic Changes to Retain Customers - To combat customer losses, Spectrum plans to implement three major changes: 1. Launching a new "invincible Wi-Fi product" that combines Wi-Fi 7 with 5G and battery backup, allowing seamless connectivity during outages [12] 2. Committing to service installation or issue resolution within two hours for residential customers and one hour for businesses [13] 3. Guaranteeing $1,000 in savings per year for customers who enroll in an internet plan with two mobile lines [13][14] Bundling Strategy - Spectrum is focusing on bundling its cable TV and internet services as a strategy to enhance customer retention, with plans to increase the percentage of customers on this new pricing model from 40% to 60% by the end of the year [15] - This bundling approach is similar to strategies employed by competitors like AT&T, Comcast, and Verizon [15] Customer Satisfaction and Industry Trends - Recent surveys indicate that Spectrum is lagging behind competitors in customer satisfaction, with a J.D. Power survey showing Spectrum's satisfaction score at 526 on the East Coast, lower than its competitors [21] - The wireless internet segment is experiencing higher customer satisfaction scores, attributed to better speed, availability, and pricing [19][21]