uploads///Telecom T Mobile Q Postpaid Phone Churn

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

By

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.

Sign up for Bagels & Stox, our witty take on the top market and investment news, straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

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

Article continues below advertisement

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.

Advertisement

More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.