Comcast and Charter: Customers Who CompeteThin moat

Verizon (VZ) — moat facet

Comcast and Charter added 854 thousand mobile lines in a quarter on Verizon's own network, a wholesale customer that is also the fastest-growing retail rival.

The strangest relationship in Verizon's business is with the cable companies. The 10-K lists them as rivals: Verizon competes "for retail activations with resellers", and "Resellers include cable companies, such as Comcast Corporation and Charter Communications, Inc."1. It also sells to them: "We sell network access to mobile virtual network operators (MVNOs) on a wholesale basis, who in turn resell wireless service under their own brand(s) to consumers"2.

Mobile net additions, Q2 2026 (thousands)448Comcast lines406Charter lines184Verizon postpaid phonesComcast, Charter and Verizon Q2 2026 results releases; lines and phones are different measures
The two resellers added more than four times Verizon's phones.

The two cable companies are growing fast on those terms. Comcast reported "Domestic Wireless Customer Line Net Additions of 448,000 - Our Best Quarterly Result on Record" in the June 2026 quarter3, and Charter said "Spectrum Mobile TM lines increased by 406,000" and that it "served 12.5 million mobile lines"4. Together they had about 22.7 million lines and added 854 thousand in a quarter5, against 184 thousand postpaid phones added by Verizon6; the measures differ, lines against phones, but the gap is wide.

Verizon renewed the arrangement rather than fight it. In January 2026 it "amended and modernized its long term Mobile Virtual Network Operator (MVNO) agreement with Charter and Comcast", which it said supports "continued profitable growth for all three parties"7. Verizon earns wholesale revenue on the cable lines that ride its network; the amount is not disclosed separately.

The cable companies' own broadband is shrinking: Comcast lost 167,000 broadband customers and Charter 172,00089. Mobile is their defence, sold as a cheap add-on to home internet, and every cable line is a household not paying Verizon retail prices.

The cable offer works because the cable companies already own the home. A household with cable broadband can add a mobile line at a low price, and the calls ride Verizon's towers. Comcast's wireless lines reached 10.2 million10 and Charter's 12.5 million11, and both companies are losing broadband customers1213, so mobile is how they defend the home they have.

The 10-K admits the tension: "Competition may increase as MVNOs resell wireless communication services"14. While cable keeps adding four or more lines for every Verizon postpaid phone, Verizon is renting its network to the companies taking its retail customers.

Moat trajectory: Narrowing

Cable added 854k lines in Q2 2026 against Verizon's 184k postpaid phones.

The number that tests this moat
Moat Explorer calc
Comcast and Charter mobile line net additions, latest quarter
854 thousand (Q2 2026: 448 thousand plus 406 thousand), against Verizon postpaid phone net adds of 184 thousand

How fast the resellers on Verizon's network grow; four or more times Verizon's own adds means the network is feeding its rivals.

How it's calculated: Comcast domestic wireless line net additions plus Charter Spectrum Mobile line net additions, Q2 2026 results releases of each company.
Source: Moat Explorer calculation from Verizon filings ↗
References
  1. ReportedThe 10-K lists them as rivals: Verizon competes "for retail activations with resellers", and "Resellers include cable companies, such as Comcast Corporation and Charter Communications, Inc.".
    Verizon Communications Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - Item 1 business, competition: named wireless and broadband competitors and resellers. — FY2025 · publ. 17 February 2026 · source ↗
  2. ReportedIt also sells to them: "We sell network access to mobile virtual network operators (MVNOs) on a wholesale basis, who in turn resell wireless service under their own brand(s) to consumers".
    Verizon Communications Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - Item 1 business, competition: named wireless and broadband competitors and resellers. — FY2025 · publ. 17 February 2026 · source ↗
  3. ReportedComcast reported "Domestic Wireless Customer Line Net Additions of 448,000 - Our Best Quarterly Result on Record" in the June 2026 quarter, and Charter said "Spectrum Mobile TM lines increased by 406,000" and that it "served 12.5 million mobile lines".
    Comcast second-quarter 2026 results release, Form 8-K exhibit 99.1 - domestic wireless line net additions and broadband customer losses. — Q2 2026 · publ. July 2026 · source ↗
  4. ReportedComcast reported "Domestic Wireless Customer Line Net Additions of 448,000 - Our Best Quarterly Result on Record" in the June 2026 quarter, and Charter said "Spectrum Mobile TM lines increased by 406,000" and that it "served 12.5 million mobile lines".
    Charter Communications second-quarter 2026 results release, Form 8-K exhibit 99.1 - Spectrum Mobile line net additions and Internet customer losses. — Q2 2026 · publ. July 2026 · source ↗
  5. Moat Explorer calcTogether they had about 22.7 million lines and added 854 thousand in a quarter, against 184 thousand postpaid phones added by Verizon; the measures differ, lines against phones, but the gap is wide.
    Moat Explorer calculation from Verizon's reported figures ($ millions unless stated; calendar years). Revenue and profit over the decade: revenue 2015-2025 (138,191 / 131,620) ^ (1/10) - 1 = about 0.5% a year; 138,191 / 131,620 - 1 = +5.0%; range 138,191 - 125,980 = about 12.2bn; 2027 revenue of 142bn would need (142 / 138.191) ^ (1/2) - 1 = about 1.4% a year; operating income 29,259 / 30,615 - 1 = -4.4%; net income 17,174 / 17,879 - 1 = -3.9%; diluted EPS 4.06 / 4.37 - 1 = -7.1%; total assets 404,258 / 244,175 - 1 = +65.6%. Segments 2025: Consumer share of segment operating income 29,628 / (29,628 + 2,532 = 32,160) = 92.1% (2024 29,484 / 31,542 = 93.5%; 2023 29,011 / 31,077 = 93.4%); Business share 2,532 / 32,160 = 7.9%; Q2 2026 Consumer 8,032 / (8,032 + 991 = 9,023) = 89.0%, Q2 2025 7,643 / (7,643 + 724 = 8,367) = 91.3%; Consumer operating margin 29,628 / 106,807 = 27.7%, Business 2,532 / 29,069 = 8.7%; Business share of segment revenue 29,069 / 135,876 = 21.4%; shared network and service costs 17,991 + 9,717 = 27,708, Business share 9,717 / 27,708 = 35.1%; Consumer share of segment EBITDA 43,801 / (43,801 + 6,644) = 86.8%; Consumer revenue 2025 106,807 / 102,904 - 1 = +3.8%, 2023-2025 106,807 / 101,626 - 1 = +5.1%; Consumer service revenue 80,617 / 77,127 - 1 = +4.5%; Consumer equipment 21,779 - 23,930 = -2,151, about 2.2bn below cost; Business revenue 29,069 / 30,122 - 1 = -3.5%; Enterprise and Public Sector 13,532 / 15,076 - 1 = -10.2%; Business Markets and Other 13,555 / 12,697 - 1 = +6.8%; Wholesale 1,953 / 2,313 - 1 = -15.6%; institutional and wholesale decline (15,076 - 13,532) + (2,313 - 1,953) = 1,904; Q2 2026 Consumer revenue 26,242 / 26,648 - 1 = -1.5%; Business revenue 7,155 / 6,973 - 1 = +2.6%; restatement 7,275 - 6,973 = 302 a quarter; mobility and broadband service revenue 2025 75,923 + 14,940 = 90,863. Customers: T-Mobile postpaid accounts 34,700 - 34,237 = 463 more than Verizon; T-Mobile 34,700 / 31,502 - 1 = +10.2%, 34,700 - 31,502 = 3,198; Verizon accounts 34,237 - 34,646 = -409, -1.2%; ARPA premium 168.35 / 152.91 - 1 = +10.1%; cable lines 10,187 + 12,540 = about 22.7 million; cable Q2 net adds 448 + 406 = 854 thousand, 854 / 184 = 4.6 times; Q2 net adds share 184 / (184 + 432 + 448 + 406 = 1,470) = 12.5%; fibre net adds 155 / 367 = 42%; annual churn at 0.92% a month 0.92 x 12 = 11.0%, about one customer in ten; 0.1 point on 94 million = about 94 thousand phones a month; prepaid churn 3.59 / 0.92 = 3.9 times; prepaid annual loss 1 - (1 - 0.0359) ^ 12 = 35.5%, average life 1 / 0.0359 = 27.9 months, a little over two years; revenue per postpaid line 170.62 / 3.67 = 46.49 (2025), 167.26 / 3.61 = 46.33 (2024); ARPA 2025 170.62 / 167.26 - 1 = +2.0%; ARPA Q2 2026 168.35 / 170.79 - 1 = -1.4%; ARPA H1 2026 167.50 / 170.30 - 1 = -1.6%; wireless service revenue 83,703 / 82,073 - 1 = +2.0%; wireless service share of revenue 83,703 / 138,191 = 60.6%; FWA revenue 2,940 / 2,139 - 1 = +37.4%; FWA revenue share 2,940 / 138,191 = 2.1%; fibre annualised 155 x 4 = 620 thousand; passings 2.0 / 30 = 6.7%; passings to fill 2,000 / 620 = 3.2 times. Spectrum and capital: C-Band 45.5 + 7.5 = 53.0bn; licences share of assets 158,159 / 410,186 = 38.6%; licences over goodwill 158,159 / 30,664 = 5.2 times; licences over equity 158,159 / 105,196 = 1.5 times; wireless service revenue per dollar of licences 83,703 / 157,039 = 0.53; spectrum bought June 2026 1.0 + 3.2 = 4.2bn; capex / revenue 17,011 / 138,191 = 12.3% (2025), 23,087 / 136,835 = 16.9% (2022); capex 17,011 / 23,087 - 1 = -26.3%; capex less depreciation 17,011 - 18,349 = -1,338; ROIC averages 2015-2019 (10.8 + 9.1 + 12.7 + 8.2 + 11.3) / 5 = 10.4%, 2021-2025 (8.7 + 7.3 + 5.0 + 7.0 + 7.1) / 5 = 7.0%; interest expense 6,694 / 5,524 - 1 = +21.2% (2023-2025); Q2 interest 1,985 / 1,639 - 1 = +21.1%; interest / operating income 6,694 / 29,259 = 22.9%. Cost, cash and capital returns: employees 89.9 / 99.6 - 1 = -9.7%; severance 533 + 1,733 + 1,715 + 397 = 4,378, about 4.4bn; adjusted EBITDA margin 49,997 / 138,191 = 36.2% (2025), 48,791 / 134,788 = 36.2% (2024); Q2 2026 operating income 7,179 / 8,172 - 1 = -12.2%; free cash flow Q2 6,426 / 5,167 - 1 = +24.4%; adjusted EPS less diluted EPS 4.71 - 4.06 = 0.65; phones sold below cost 28,976 - 25,470 = 3,506, about 3.5bn; dividends / free cash flow 11,481 / 20,126 = 57.0% (2025), 5,864 / 10,209 = 57.4% (H1 2026); dividends / net income 11,481 / 17,174 = 66.9%; dividends per share 2.735 / 2.230 - 1 = +22.6%, (2.735 / 2.230) ^ (1/10) - 1 = 2.1% a year; dividend cost a quarter 0.7075 x 4,155 = about 2,940; buyback average 3,500 / 72.047 = about $48.58 a share; shares 4,155 / 4,217 - 1 = -1.5%; free cash flow yield 21.53 / 193.94 = 11.1%; cash returned about (11.5 + 4.5) / 193.94 = 8.2% of market value; net unsecured debt 128,682 - 110,053 = 18,629; backlog 55.2 / 58.1 - 1 = -5.0%; backlog months 58.1 / 138.191 x 12 = about 5.0; device receivables 34,004 / 31,308 - 1 = +8.6%, allowance 1,628 / 1,315 - 1 = +23.8%; TracFone 3.5 + 3.0 = 6.5bn plus up to 0.65bn. Valuation: Frontier price / market value 22.3 / 193.94 = 11.5%; market value 193.94 / 253.94 - 1 = -23.6% (against end-2019), 193.94 / 188.06 - 1 = +3.1% (against end-2015); target 51.58 / 46.68 - 1 = +10.5%; year-end market value over net income 188.06 / 17.879 = 10.5 (2015), 217.61 / 13.127 = 16.6 (2016), 215.92 / 30.101 = 7.2 (2017), 232.30 / 15.528 = 15.0 (2018), 253.94 / 19.265 = 13.2 (2019), 243.11 / 17.801 = 13.7 (2020), 215.12 / 22.065 = 9.7 (2021), 165.47 / 21.256 = 7.8 (2022), 158.49 / 11.614 = 13.6 (2023), 168.34 / 17.506 = 9.6 (2024), 171.74 / 17.174 = 10.0 (2025); trailing twelve months to June 2026 revenue 138,191 - 67,989 + 68,693 = 138,895, net income 17,174 - 9,882 + 8,880 = 16,172, 193.94 / 16.172 = 12.0, 193.94 / 138.895 = 1.40 - customers, churn, ARPA and competitors. — 2015-2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Verizon's Forms 10-K and 10-Q, quarterly results releases, the recast segment revenue 8-K, peer results releases (T-Mobile, AT&T, Comcast, Charter) and market data; operands shown in the source line.
  6. ReportedTogether they had about 22.7 million lines and added 854 thousand in a quarter, against 184 thousand postpaid phones added by Verizon; the measures differ, lines against phones, but the gap is wide.
    Verizon second-quarter 2026 results release, Form 8-K exhibit 99 - consolidated and segment results, operating statistics, cash flow, balance sheet and guidance - consolidated results and special items. — Q2 2026 · publ. 24 July 2026 · source ↗
  7. ReportedIn January 2026 it "amended and modernized its long term Mobile Virtual Network Operator (MVNO) agreement with Charter and Comcast", which it said supports "continued profitable growth for all three parties".
    Verizon fourth-quarter and full-year 2025 results release, Form 8-K exhibit 99 - full-year operating statistics, segment EBITDA, free cash flow 2020-2025 and 2026 guidance - cash flow, capital spending, debt and 2026 guidance. — FY2025 · publ. 30 January 2026 · source ↗
  8. ReportedThe cable companies' own broadband is shrinking: Comcast lost 167,000 broadband customers and Charter 172,000.
    Comcast second-quarter 2026 results release, Form 8-K exhibit 99.1 - domestic wireless line net additions and broadband customer losses. — Q2 2026 · publ. July 2026 · source ↗
  9. ReportedThe cable companies' own broadband is shrinking: Comcast lost 167,000 broadband customers and Charter 172,000.
    Charter Communications second-quarter 2026 results release, Form 8-K exhibit 99.1 - Spectrum Mobile line net additions and Internet customer losses. — Q2 2026 · publ. July 2026 · source ↗
  10. ReportedComcast's wireless lines reached 10.2 million and Charter's 12.5 million, and both companies are losing broadband customers, so mobile is how they defend the home they have.
    Comcast second-quarter 2026 results release, Form 8-K exhibit 99.1 - domestic wireless line net additions and broadband customer losses. — Q2 2026 · publ. July 2026 · source ↗
  11. ReportedComcast's wireless lines reached 10.2 million and Charter's 12.5 million, and both companies are losing broadband customers, so mobile is how they defend the home they have.
    Charter Communications second-quarter 2026 results release, Form 8-K exhibit 99.1 - Spectrum Mobile line net additions and Internet customer losses. — Q2 2026 · publ. July 2026 · source ↗
  12. ReportedComcast's wireless lines reached 10.2 million and Charter's 12.5 million, and both companies are losing broadband customers, so mobile is how they defend the home they have.
    Comcast second-quarter 2026 results release, Form 8-K exhibit 99.1 - domestic wireless line net additions and broadband customer losses. — Q2 2026 · publ. July 2026 · source ↗
  13. ReportedComcast's wireless lines reached 10.2 million and Charter's 12.5 million, and both companies are losing broadband customers, so mobile is how they defend the home they have.
    Charter Communications second-quarter 2026 results release, Form 8-K exhibit 99.1 - Spectrum Mobile line net additions and Internet customer losses. — Q2 2026 · publ. July 2026 · source ↗
  14. ReportedThe 10-K admits the tension: "Competition may increase as MVNOs resell wireless communication services".
    Verizon Communications Inc. Form 10-K for fiscal 2025 (year ended 31 December 2025) - Item 1A risk factors: lead-sheathed cable, competition, debt and the dividend. — FY2025 · publ. 17 February 2026 · source ↗
Sources
Generated September 29, 2026