uploads///Telecom T Mobile Q Postpaid Phone Churn

T-Mobile’s Postpaid Phone Churn Rate Improved in Q1


Apr. 30 2019, Published 11:01 a.m. ET

T-Mobile’s postpaid phone churn rate

In this part, we’ll discuss T-Mobile’s (TMUS) customer retention metric—the churn rate. T-Mobile’s postpaid phone churn rate continued to decline YoY (year-over-year) in the first quarter. The company reported a record-low branded postpaid phone churn rate of 0.88% in the first quarter, which was lower than its rate of 1.07% in the first quarter of 2018.

The reduction in the postpaid phone churn rate is mainly driven by increased subscriber satisfaction and loyalty from ongoing improvements to T-Mobile’s customer service and network quality.

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The lower churn rate helps wireless service providers save on acquisition costs associated with acquiring a customer, which helps them expand their operating margin.

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Peer comparison

In the first quarter, among the top four major US mobile operators, Verizon (VZ) is expected to have the best postpaid phone churn rate of 0.84%. AT&T (T) had a postpaid phone churn rate of 0.93%. Sprint (S) hasn’t reported its financial results for the same quarter. Analysts expect Sprint to report a postpaid phone churn rate of 1.85% in the fourth quarter of fiscal 2018, which ended on March 31.


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