Is it Time for Rate Cuts?

Comcast and Charter broadband customer growth has stagnated, and all of the cable companies are now slowly losing customers. There are a lot of reasons for the stagnation and customer losses. One of the factors that put cable companies at such a competitive disadvantage is broadband prices. The cable companies have been regularly raising rates annually for years to levels that are far higher than all of their competitors. The high rates were sustainable in markets where the cable companies held a virtual monopoly, but an increasing number of their markets now see competition from fiber and fixed wireless access. Cable companies are under tremendous pressure from Wall Street to increase earnings, and that’s extremely challenging in an industry where they are losing customers to multiple aggressive competitors. But if companies are losing customers, is it time to cut rates?