T-Mobile’s postpaid phone churn rate in 3Q17
T-Mobile’s (TMUS) postpaid phone churn rate continued to fall on a YoY (year-over-year) basis in 3Q17. The company reported a record-low postpaid phone churn rate of 1.23% in 3Q17, compared with 1.32% in 3Q16.
This fall in its postpaid phone churn rate was primarily due to T-Mobile’s MVNO (mobile virtual network operator) transactions, as subscribers transferred had a higher rate of churn.
In 3Q16, T-Mobile had completed a transaction with one of its MVNO partners, and this involved transferring 1.4 million postpaid and prepaid customers to wholesale. The company also witnessed increased loyalty and customer satisfaction from continuous improvements to its network quality and customer service.
Remember, lower churn helps telecom companies save on the acquisition costs related to acquiring a customer, which helps them expand their operating margins.