Comcast lost 139,000 residential broadband subs in Q4 2024 – more than what analysts were expecting – as it faced intensifying competition from fiber overbuilders and fixed wireless access (FWA) rivals. But the nation's largest cable operator stressed that it is not standing idle as it prepares to introduce a wave of new, simplified home broadband/mobile packages in its upgraded cable markets.
Specifics about those packages haven't been announced, but execs said Comcast will put a greater emphasis on packages that feature wireless and are paired with higher-end speed tiers.
Those new packages, which will be introduced in the coming months, will feature "simplified, all-in pricing" and "our best tiers of broadband," Dave Watson, president and CEO of Comcast's cable unit, said on today's earnings call. "This is a fundamental shift that will impact acquisition, base management and retention."
More specifics about that plan might emerge next week at Comcast's "Converge" event in Washington, D.C. But the company is expected to emulate some of the approaches Charter Communications has taken with its latest convergence packages that bundle home broadband with mobile.
And expect wireless to take a greater role moving forward.
"We'll lean into wireless more than ever before," Comcast President Mike Cavanagh said. "You will see us shift our strategy to package mobile with more of our higher-tier broadband products, both for new and many of our existing customers."
Related:For cable broadband the worst may be over
Tied into this broader shift in pricing and packaging strategy, Comcast execs are now starting to focus on a "convergence revenue" metric that combines domestic wireless and broadband revenues. In Q4 2024, convergence revenues at Comcast rose by 5% year-over-year. In 2025, Comcast expects that combined convergence revenue to grow faster than standalone broadband revenue.
'Project Genesis'
Comcast initially will concentrate those packages in its newly upgraded cable markets, which include those that have deployed virtual cable modem termination systems (vCMTSs) and implemented "mid-splits" that beef up the amount of spectrum dedicated to the upstream. Comcast, which is expanding the availability of multi-gigabit symmetrical speeds underpinned by DOCSIS 4.0, is also starting to deploy a new low-latency capability to subs served by its upgraded hybrid fiber/coax (HFC) networks.
Comcast's label for the upgrade project will ring familiar to those who recall a big plot-driver in "Star Trek II: The Wrath of Khan."
"'Project Genesis,' as we call it, is making great progress," Watson said. He noted that about 50% of Comcast's HFC network is now fully virtualized, and is on pace to reach 70% by year-end. Comcast also expects to complete mid-split upgrades to the majority of its HFC plant by year-end.
Related:Comcast wields low latency as broadband differentiator
Cable broadband losses have likely peaked
Comcast's Q4 broadband losses of 139,000 subs (-131,000 residential subs and -8,000 business subs) were greater than the -100,000 that Comcast predicted and the -73,000 expected by analysts. However, domestic broadband revenues rose 2%, to $6.52 billion, and residential broadband average revenue per unit (ARPU) climbed 3.1%.
Watson said Comcast may have been too optimistic in the "price-conscious" segment of the market, which has largely been gravitating to FWA options. The market is "intensively competitive in all segments," he said.
Comcast beat analyst expectations in most areas in Q4, "but missed on the one that is virtually all anyone cares about, broadband net adds," MoffettNathanson analyst Craig Moffett explained in a research note (registration required).
That sentiment showed in Comcast's stock, which was down $4.66 (-12.46%) to $32.70 per share in Thursday morning trading.
Moffett said the good news is that cable broadband subscriber losses have likely peaked. "2025 won't be great but it is, in our view, almost certain to be 'less bad.'" He predicts that US cable, as a sector, could return to broadband subscriber growth in 2026.
Related:Comcast ready to hit the accelerator on DOCSIS 4.0
Comcast views fiber and FWA as its primary sources of competition, with fiber expected to be cable's long-term broadband competitor. However, Comcast is also keeping tabs on satellite broadband competition, which so far has not had a material impact on the cable operator's business and remains largely focused on rural areas.
"We're not being dismissive of it, though," Watson said of satellite broadband. "We're going to watch it very closely."
Comcast is benefiting from satellite broadband to a degree. Its business services unit has an agreement with Starlink to bring connectivity to areas not reached by its wireline broadband networks.
More mobile growth
Meanwhile, Comcast's mobile business continues to expand.
Comcast added 307,000 mobile lines in Q4, near the 310,000 it added in the year-ago quarter for a total of 7.82 million. Comcast added 1.23 million mobile lines for full-year 2024. Wireless revenues rose 16.6% to $1.18 billion in Q4.

Video losses of 311,000 were bad, but better than the loss of 375,000 expected by analysts and better than a year-ago loss of 389,000. Comcast ended 2024 with 12.52 million video subs.
Financial snapshot
Comcast pulled in Q4 consolidated revenues of $31.91 billion versus $31.25 billion in the year-ago quarter. Analysts were expecting $31.5 billion.
Among segments of the company, domestic broadband revenues rose 2% to $6.52 billion, video revenues dipped 5.8% to $6.5 billion, and business service revenues rose 3.7% to $2.44 billion.
Total revenue from Comcast's connectivity and platforms segment was down 0.2%, to $18.01 billion.
Peacock's paid subscriber growth was flat, ending the quarter with 36 million. However, Peacock revenues reached $1.32 billion, up from $1.03 billion in the year-ago quarter.
Editor's note: The story has been updated with more detail on Comcast's focus on what it calls "convergence revenues."