Charter sheds more broadband customers than expected as competition heats up

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(Reuters) -Charter Communications reported a larger-than-expected decline in broadband subscribers for the third quarter on Friday, as the U.S. broadband and cable TV provider grapples with intense competition from wireless carriers.

Shares of the Stamford, Connecticut-based company fell 5% in premarket trading.

Wireless carriers’ aggressive promotion of fixed-wireless access (FWA) home internet services as a viable alternative to traditional cable internet has heightened pressure on Charter and Comcast.

Charter has been pushing its converged bundles that combine high-speed internet with competitively priced Spectrum Mobile plans. It has also expanded into rural areas to boost its broadband reach and service offerings.

Comcast said on Thursday that it does not expect the competitive broadband environment to change anytime soon.

Charter lost 109,000 internet customers in the quarter ended September 30, compared with an expected decrease of 82,950, according to Visible Alpha.

Total video customers decreased by 70,000, an improvement from the 294,000 decline in the same period last year, driven by new and simplified pricing and packaging launched in September last year.

Revenue for the third quarter came in at $13.67 billion, compared with the average analyst estimate of $13.74 billion, according to data compiled by LSEG.

The company also added 493,000 mobile lines, compared with a 545,000 rise a year earlier.

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Sriraj Kalluvila)