The new chief executive officer replacing Dick Parsons on Jan. 1 faces investor pressure to sell at least part of Time Warner's 84 percent stake in the cable operator, which serves more than 13.5 million customers in 33 states, USA Today reported Tuesday.

Investors have cooled to cable as broadband-subscription growth slowed and competition from satellite and phone companies, especially Verizon Communications Inc. (NYSE:VZ), intensified, the newspaper said.

Phone companies alone might take 10 percent of Time Warner's basic cable subscribers by the end of 2010, Goldman Sachs Group Inc. estimated.

Investors fear that to remain competitive cable operators will have to hold the line on rate increases, while spending heavily on equipment needed to keep pace with rivals that plan to offer more than 100 high-definition television channels as the nation switches to digital from analog TV, the newspaper said.

Time Warner Cable shares have fallen more than 30 percent since it went public in January. The stock was up 48 cents, or 1.76 percent, to $27.83 in late morning trading on the Nasdaq stock market.