Halaoui says that the mobile churn rates
vary drastically between different markets, and depend on different factors, such as the maturity of the market, the price sensitivity of customers, the percentage of prepaid subscribers in the market, the competitive landscape, and most importantly, the pricing and commercial strategies of different operators within that market.
Despite the continuous growth in subscriber additions, mobile churn rates
have spiralled upward in developed economies over the last few years.
News of the churn rate
caused concern among analysts, sending shares in BSkyB down 2p at 453p after the results announcement.
NTL's core Home division added 39,800 new customers in the quarter while its churn rate
fell to 12.
Figure 7: Worldwide net monthly churn rates
Table 8 - Foxtel subscriber annual churn rate
by customer category - 2006
The churn rate
- showing the percentage of customers who disconnected their service in the quarter - was 1.
report "2Q08 Argentina Mobile Forecast, 2008 - 2010: Telecom Argentina will continue to see churn rates
30% - 70% higher than competitors Movistar and CTI in the Argentina mobile market" to their offering.
Chart 7: Churn rate
+ replacement rate - DoCoMo, KDDI, Softbank, 2003 - 2009
Verizon Wireless superior network coverage and reputation have presented recurring opportunities for strong subscriber growth and the lowest churn rate
in the industry.
We remain concerned, however, that a high churn rate
, up to 4.
Stemmler continued, "We expect a positive impact on our churn rate
, new customer growth rate, and total customer satisfaction.