Subscriber Churn Reason in Telecommunication



What’s predicting churn in Telecommunications apart from tariff Plans

What Churn[Port Out ] figure says in India

Recent Tarrif hike also indicated Network Quality /Performance never been a primary reason of Churn 

In Above Pie Chart customer is moving from AA to BJ it's ok can have some kind of network experience issue but why moving from AA to CV or DB justified ???

And intresting thing is why after tarrif hike movement towards CV and DB from AA is further increased ???

Actual Scenario :- Operator AA-73% Churn towards Operator -BJ , 25% towards Operator- CV and 2% towards Operator DB.

AA is 2nd Operator w.r.t CMS   Service- 2G ,4G,5G-NSA

BJ is 1st Operator w.r.t CMS.  Service -4G , 5G-SA

CV is 3rd Operator w.r.t CMS. Service-2G,4G(Partial) 

DB is 4th operator w.r.t CMS. Service -2G 3G 4G(Partial)

RCA-1.Whichever customer move from AA to BJ/CV operator through port out process 43% was unsatisfied with AA network and 46% due to differential tariff plans and 11% didn't concluded

RCA-2. 43% of AA operator which was churn towards BJ/CV due to network related issue 17% was facing indoor coverage issue and 12% was expecting unlimited 5G that BJ was offering  ]

Conclusion :- Out of 100 churn from AA towards BJ/CV , 43 were experienced network issue and 46 having tariff plan issue . out of 43 churn due to network , 17 contribution towards coverage and 12 with Unlimited 5G  expectation . So we should add these 12 cases into tariff plans so final tally are below 

Business Matrix/Tariff Plan  - 46+12 =58

Network Matrix- 43-12=31 [ Indoor Coverage- 17 , Voice/Data Exp-14 ]

Recently there was some Tarrif hike in Mobility service across major operators in India 

India's three private telcoraised mobile tariffs by 11-25%, with the changes taking effect from July-2024 1st Week . As per analysts, this would increase the spending on telecom services in urban India to 2.8% of household expenditures in fiscal 2025 from 2.7% in FY24.

AA , BJ and CV has increased tarrif but one of operator has not increased tarrif which was DB 

So let me tell you how arithmetic of Churn got change and you will definitely be able to understand network service quality is always comes 2nd while  while a customer choosing TSP.

1st Priority remain same that is cost of service that customer is going to pay 

Here is churn % movement from operator AA towards other operator 


What Demography and other matrix says about Churn?

1. Churn Rate of 3G Cap UE>Churn Rate of 2G Cap UE > Churn Rate of 4G Cap UE>Churn Rate of 5G Cap UE [ 19% Vs 3% Vs 1.9% Vs 1.5%]


2. Dual SIM UE[2 different Operator]Subscriber Churn rate > Single SIM UE  [6% Vs 1%]

3. A subscriber with one phone churn rate < A subscriber with multiple phone churn rate [ 1.6% vs 3%]


4. 18-24 Years Customer have 31% possibility of port out | Churn Rate >2.5%


5. >35 Years Customer have very less possibility of port out | Churn Rate <1.2%


6. Female are less reactive towards Port out vs Male [1% Vs 1.8%]

7. Handset with cost <10K has 35% probability of Port out

8. If a customer is watching Videos on mobile then Higher duration of Video watch time yield lower churn probability 

 

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