Comcast Corporation Class A (CMCSA.US) shares plummeted 7% as the CFO criticized broadband pricing as irrational, and user loss remains difficult to stop.

U.S. telecommunications and media giant Comcast Corporation Class A (CMCSA.US) saw its stock price drop by 6.6% on Wednesday after Chief Financial Officer Jason Armstrong stated that the churn in broadband users has not improved this quarter, as competitors are attracting customers with lower prices. At an industry conference hosted by Goldman Sachs Group, Inc., Armstrong revealed that competitors are offering gigabit broadband access at monthly fees ranging from $30 to $40, a pricing strategy that makes it difficult for Comcast Corporation Class A to show reasonable returns on investment. "For us, this is not a rational price point," he remarked bluntly. This statement indicates that Comcast Corporation Class A's net loss of broadband users in the current quarter may be close to the previous quarter's figure of 167,000, rather than the 103,000 that analysts had previously anticipated. As a result, Comcast Corporation Class A's stock price closed down 6.6% at $24.59; another major internet service provider, Charter Communications (CHTR.US), saw its stock price drop by 8.1%. Comcast Corporation Class A has been facing fierce competition from other operators in recent years, as they have rolled out bundled home broadband and mobile plans to attract new customers and enhance the retention of existing ones. Currently, Charter Communications' Spectrum brand offers a one-year gigabit home broadband package with a monthly fee of $60; Optimum Communications, serving areas such as New York, offers a gigabit fiber package for $25 per month. Wireless giant Verizon (VZ.US) has a Fios fiber package priced at $30 per month, but to achieve gigabit speeds, customers must pay $80. In comparison, Comcast Corporation Class A's currently promoted Xfinity gigabit internet service costs $50 per month. Charter Communications CEO Chris Winfrey acknowledged pricing pressures during his address at the same conference on Wednesday. He stated, "The competition was very fierce in the first quarter, it was the same in the second quarter, and it continues into the third quarter. You will see the intensity of competition varying from company to company, with some adopting a blended model and others employing a singular strategy." Headquartered in Philadelphia, Comcast Corporation Class A recently announced plans to spin off its media assets from its network connectivity business, but the company has been struggling with a continuous loss of cable and broadband customers. Armstrong World Industries, Inc. stated that the company expects to see a "moderate" improvement in earnings before interest, taxes, depreciation, and amortization (EBITDA) in the third quarter, and expects an overall improvement in broadband user trends for the year. When discussing the theme park business, Armstrong World Industries, Inc. acknowledged that the "softness in the Orlando market" observed in the second quarter has continued into this quarter. He analyzed, "This is influenced both by macroeconomic factors and other elements such as gasoline and airfare prices, which have all affected the market to some extent."