Spectrum, which is owned by Charter Communications, has faced significant headwinds in its broadband business as it struggles to compete with growing rivals. After seeing hundreds of thousands of its internet customers jump ship over the past year, the company has received approval to acquire a major competitor to help reverse those losses. 

In Charter Communications’ latest earnings report, the company revealed that Spectrum lost a whopping 119,000 internet customers during the fourth quarter of 2025 alone. For the full year of 2025, Spectrum saw more than 400,000 internet customers cancel their service. 

During an earnings call in January, Charter Communications CEO Christopher Winfrey told analysts that in the company’s broadband business, “competition for new customers remains high.” Specifically, he flagged increased competition from fiber and fixed wireless internet providers and said that low move activity in the U.S. housing market has also created additional challenges. 

“The operating environment for new sales, in particular internet, continues to reflect low move rates and higher mobile substitution,” said Winfrey. “Along with both expanded cell phone internet competition and fiber overlap growth, similar to earlier in the year, collectively, that drove fourth-quarter internet sales slightly lower year over year.”

Many consumers across the country have been exploring nontraditional options for internet service as they battle higher prices, especially from cable TV providers. Spectrum was one of the providers that raised its internet plan prices in 2025. 

A survey from Reviews.org last year found that 63% of Americans want lower monthly costs attached to their internet service, and three in four have either downgraded, canceled, or considered switching internet providers to save money. 

Fixed wireless internet (or 5G home internet) services, often offered through phone carriers such as T-Mobile, Verizon, and AT&T, have become popular for their affordable prices and greater availability in rural areas compared to traditional wired internet.

“A 5G fixed wireless service is probably not for everyone, but more and more this technology has gained a reputation as a practical, useful, and cost-effective home internet option,” said Peter Holslin, managing editor at Reviews.org, in a statement.

Spectrum lost more than 400,000 broadband customers in 2025.

Weiss/Shutterstock

Charter acquires major rival amid Spectrum customer losses, with caveats

Amid rising competition, Charter announced plans in May last year to acquire Cox Communications for $34.5 billion to “create an industry leader” in mobile, broadband and video entertainment, according to a press release.  

The acquisition will introduce Cox customers to Charter’s pricing and packaging structure, including no annual contracts for residential services. Also, Cox customers will have the option to pay less for Spectrum’s bundled services or keep their current plans.

“This combination will augment our ability to innovate and provide high-quality, competitively priced products, delivered with outstanding customer service, to millions of homes and businesses,” said Winfrey in the press release. 

On Feb. 27, the Federal Communications Commission finally approved the acquisition, but under several conditions that Charter has signed off on, affecting its customers and employees. 

As it acquires Cox, Charter will now invest billions of dollars to upgrade its network and deliver high-speed internet service to homes and businesses nationwide, especially in rural areas, according to a recent press release. This means that consumers will see “faster broadband and lower prices.”

Related: Spectrum drops bold new offer after heavy customer losses

Charter has also committed to onshoring all jobs that are currently handled offshore by Cox within 18 months, reflecting its “commitment to a 100% U.S.-based customer sales and service employee workforce.” 

It also agreed to offer Cox employees a minimum starting wage of $20 per hour and full benefits, including “Invest in America” Trump accounts.

In addition, Charter has agreed to “new safeguards to protect against DEI discrimination,” vowing to commit to hiring, recruiting, and promoting individuals based on their skills, qualifications, and experience.

“By approving this deal, the FCC ensures big wins for Americans,” said FCC Brendan Carr in a press release. “This deal means that jobs are coming back to America that had been shipped overseas.” 

“It means that modern, high-speed networks will get built out in more communities across rural America,” he continued. “And it means that customers will get access to lower priced plans. On top of this, the deal enshrines protections against DEI discrimination.”

Charter’s Spectrum falls behind broadband rivals as competition intensifies 

Charter’s FCC-approved acquisition of Cox comes after Verizon, another growing competitor in the broadband market, also completed a $20 billion acquisition of Frontier Communications in January. 

The deal aims to rapidly expand its wireless and broadband services to current and new customers. After the acquisition was finalized, Verizon’s network footprint increased. It now reaches 31 states and Washington, D.C., posing a major threat to Spectrum and other telecom giants.

More Telecom News:

  • T-Mobile drops 2 new phone plans to stop customers from fleeing
  • Verizon CEO shifts gears after 2.25 million customers depart
  • AT&T closes billion-dollar acquisition to win back customers

AT&T, another Spectrum rival, also finalized its $5.75 billion acquisition of Lumen’s Mass Markets fiber business in February. As a result, AT&T’s fiber internet service is now available across 32 states. 

While Spectrum takes a bold step to battle intense competition, it struggles to surpass its fixed wireless and wired internet rivals in consumer satisfaction across several regions nationwide, according to a J.D. Power survey from last year.

How Spectrum compares to competitors in U.S. consumer satisfaction:

  • On a 1,000-point scale, the average satisfaction score for wired internet is 554, while wireless internet scores 647.
  • Along the East Coast, Spectrum trails several wired internet competitors, including Verizon, Cox Communications, and Xfinity, earning a satisfaction score of 526.
  • In the North Central region, Spectrum earned a 540 rating, placing behind AT&T (554) and Xfinity (551).
  • On the West Coast, consumer ratings favor AT&T and Frontier Communications over Spectrum.
  • In the South, Spectrum ranks below GFiber, AT&T, Xfinity and Frontier Communications.
    Source: J.D. Power 

Carl Lepper, senior director of technology, media and telecom intelligence at J.D. Power, notes in a press release that “the internet landscape is clearly evolving,” as more consumers favor wireless internet providers. 

“The high satisfaction we are seeing in the wireless internet segment is attributed to internet speed, availability and the hassle-free ability to start, combined with a lower price,” said Lepper. “Additionally, with more provider options, customers are able to choose the service that best fits their lifestyle.”

Related: Spectrum revamps internet service as customers exit