Sprint’s postpaid phone churn in fiscal 2Q16
In the preceding part of this series, we discussed Sprint’s (S) continued prepaid weakness over the past few quarters. Now let’s talk about Sprint’s customer retention metric, the churn rate. Sprint’s postpaid phone churn continued to improve YoY (year-over-year) in fiscal 2Q16 and was the best in company history.
The company’s postpaid phone churn of 1.37% in fiscal 2Q16 was lower than its 1.49% in fiscal 2Q15 and 1.39% in fiscal 1Q16. Sprint’s postpaid phone churn was modestly better, as the company highlighted its improved network and tighter credit strategy. This is attracting higher quality customers, which is allowing it to focus on better customer experience.
Peer comparison of postpaid phone churns in 3Q16
Although Sprint has made remarkable progress in bringing down postpaid phone churn, it remains well above Verizon Communications’ (VZ) and AT&T’s (T) churn rates. In 3Q16, AT&T, Verizon, and T-Mobile (TMUS) had postpaid phone churn rates of 0.90%, 0.90%, and 1.32%, respectively. Verizon has the best churn rates in the industry at ~0.90% for the past six consecutive quarters.
For the second consecutive quarter, Sprint claimed that it had positive postpaid porting (the ratio of net subscriber additions to net losses) ratios as compared to all three national wireless carriers during the same quarter.