AT&T’s Mobility Churn Rate

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This interactive staistic highlights AT&T’s Mobility Churn Rate from Q2 2016 till the latest quarter of 2020.
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This interactive statistic highlights AT&T’s Mobility Churn from 2016 to the latest quarter of 2020. The churn rate highlights the rate of customer disconnection with each passing quarter. A high churn rate may signify that the company isn’t able to retain customers and it needs to work on customer retention strategies. On the other hand, a low churn rate signifies a healthy telecom operation. Thus, a low churn is favorable for all telecom companies.

The post-paid churn has had an overall decline in 2017 despite an increase after the fall in Quarter 2, as compared to 2016, for both phone and other devices which indicates that less number of customers have stopped using their services in the given categories. But, the churn has soon recovered in the next year, i.e. 2018 and reached a new high thereby creating an unfavourable position for the company. Even the next year 2019 proves to be no favourable for the company as AT&T’s mobility churn rate has had an overall increase during the year.

So, in just 4 years, the Mobility Churn Rate has increased for AT&T from 0.97% in 2016 to 1.29% by the end of 2019 and from 0.84% in 2016 to 1.07% by the end of 2019, for phone and other devices respectively.

Category-wise Analysis –

From the chart it is evident that the post-paid Churn with Phones is much lower than the post-paid Churn with other devices which means that the rate at which customers are leaving AT&T’s services is higher in case of other devices as compared with phones due to tablet and involuntary churn.

Quarter-wise Analysis-

The chart shows that AT&T’s Mobility churn rate increases rapidly in Q3 and Q4 and falls sharply in Q1 and Q2 in all the years from 2016-2019, for both prepaid and post-paid mobility. According to the company, the fall can be credited to lower demand as customers continue to shift to their more advanced IP-based offerings or to their competitors. This indicates a the cyclicality in the telecom giant’s churn rate trends.

Qualitative Analysis-

The financial report of the company states that subscribers that purchase two or more services from them have significantly lower churn than subscribers that purchase only one service. Hence, to attract and retain subscribers in this mature and highly competitive market, they have launched a wide variety of plans at reduced rates, and such subscribers tend to have higher retention and lower churn rates.

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