Spectrum is making a desperate move to win back fleeing customers

Spectrum, which is owned by Charter Communications (CHTR) has revealed it is making some serious adjustments to its business after its customers continue to cut the cord on internet services following a series of price hikes.

In Charter’s second quarter 2024 earnings report, it revealed that Spectrum lost about 149,000 internet customers during the quarter and significantly hurt its earnings.

Related: Spectrum customers show company the consequences of price hikes

During a recent earnings call discussing the report, the company largely blamed the significant loss on the end of the Affordable Connectivity Program (ACP), which was discontinued in February. ACP was a government program offered by Spectrum that gave eligible households a discount of up to $30 per month for internet.

“We estimate that the end of program impact on gross adds and internet loss in the second quarter drove more than 100,000 of our $149,000 in internet losses this quarter,” Charter Communications CFO Jessica Fischer said during the call. “And on the financial side, there was about a $30 million headwind to second-quarter revenue from non-recurring items related to ACP in the quarter.”

Spectrum customers attack company over price hikes

In recent months, many customers have even complained that Spectrum has raised its Internet service prices. The most recent price increase came in July, when Spectrum raised its Internet prices by $3 to $4, depending on the plan.

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Has anyone noticed that Spectrum raises prices little by little several times a year?
by u/IAmWillMakesGames in madisonwi

Spectrum price increases
by u/fourfiftyeight in Spectrum

Spectrum is introducing major changes to attract and retain customers

After facing backlash and a mass loss of customers, the company revealed that it is launching “a new and simplified pricing strategy” and “price guarantees”, all of which are part of its new “customer commitment”. according to a new press release. .

Spectrum now offers Internet for a starting price of $30 per month, with speeds starting at 500 Mbps when combined with mobile or video service. Internet service pricing plans will also be guaranteed for up to three years.

The company is also automatically boosting the internet speed for Spectrum Internet and Spectrum Internet Ultra customers to 400 and 600 Mbps respectively for free.

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It also promises to be more committed to quickly resolving service disruptions. Spectrum claims that if a service outage lasts more than two hours, customers will be given credit for the full day. Also, if a customer is not satisfied with the service they receive within the first 30 days, they will receive a refund.

“If we charge for a service, it should work all the time; if not, our customers should trust that we will get it right,” Charter Executive Vice President of Customer Operations Cliff Hagan said in the press release. “Focusing on reliability, transparency and outstanding service, we want to exceed expectations, build lasting loyalty and meet our customers’ needs with renewed energy and focus on keeping them seamlessly connected.

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