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Sprint’s Customer Retention Continues to Improve in Fiscal 2Q15

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Sprint’s customer retention in fiscal 2Q15

In the last part of the series, we looked at postpaid net additions of Sprint (S) Platform during fiscal 2Q15. Sprint Platform added ~553,000 postpaid customers on a net basis during the quarter. It also had postpaid phone net additions of ~237,000 during the quarter.

Now let’s look at Sprint’s customer retention during the quarter. We’ll specifically look at the company’s postpaid churn metrics. Sprint Platform’s postpaid churn continued to improve significantly YoY (year-over-year) during fiscal 2Q15.

As you can see in the above chart, Sprint Platform’s postpaid churn fell significantly from ~2.2% in fiscal 2Q14 to ~1.5% in fiscal 2Q15. This churn metric also improved slightly sequentially during fiscal 2Q15. In fiscal 1Q15, Sprint Platform’s postpaid churn was ~1.6%.

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Customer retention of other US wireless players

Among the other top US wireless carriers, Verizon’s (VZ) and T-Mobile’s (TMUS) customer retentions also improved YoY during the September quarter. Verizon had the best retention of postpaid customers among the top four players in the United States. Its postpaid churn fell from ~1% in 3Q14 to ~0.93% in 3Q15.

T-Mobile’s postpaid phone churn fell from ~1.6% in 3Q14 to ~1.5% in 3Q15. AT&T’s (T) postpaid churn rose from ~0.99% in 3Q14 to ~1.2% in 3Q15.

Instead of investing directly in Sprint’s stock, you may consider taking diversified exposure to the telecommunication company by investing in the Vanguard Telecommunication Services ETF (VOX). The ETF had ~1.8% of its holdings in Sprint at the end of September 2015.

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