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What to Expect from T-Mobile’s Postpaid Phone Churn Rate in Q1

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T-Mobile’s postpaid phone churn rate

In this part, we’ll discuss T-Mobile’s (TMUS) customer retention metric—the churn rate. Analysts expect T-Mobile to report a postpaid phone churn rate of 0.97% in the first quarter compared to 1.07% in the first quarter of 2018 due to increased customer satisfaction and loyalty from ongoing improvements to T-Mobile’s network quality and customer service.

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In the fourth quarter of 2018, T-Mobile reported a postpaid phone churn rate of 0.99%—compared to 1.18% in the fourth quarter of 2017. The lower churn rate helps mobile operators save on acquisition costs associated with acquiring a customer, which helps them expand their operating margin.

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Peer comparison

Among the top four major US wireless service providers, Verizon (VZ) is expected to report the best postpaid phone churn rate in the first quarter. Verizon is expected to report a postpaid phone churn rate of 0.83% in the first quarter. AT&T (T) is expected to post a postpaid phone churn rate of 0.92%. Sprint (S) is expected to report a postpaid phone churn rate of 1.85% in the same quarter.

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