Churn pressure increases for local telcos

Churn pressure increases for local telcos

A survey of 4000 mobile phone subscribers has revealed that telecommunications carriers will come under increased churn pressure as customers with higher service demands take advantage of mobile number portability (MNP). Recently introduced, MNP allows consumers to keep their mobile phone number when they change their mobile service provider - a process known as porting.

The Australian Telecommunications Satisfaction/ Ranking Report, which was produced by online research firm APT Strategies, analysed the mobile phone market in light of "the steady rise of the use of mobile phones in Australia". Looking at different carriers, it rated the most popular providers according to customer satisfaction.

According to the report, the rate of subscribers changing operators is likely to increase for Telstra, Dingo Blue and RSL, all of which received a below average performance ranking from the users taking part in the survey. Operators with the lowest churn risk - Orange, Primus and Virgin Mobile - were also found to be the ones with the highest customer satisfaction. The survey found that the risk of churn increased with the "demanding-ness" of a customer, which was the second measure used in working out the churn exposure rate.

The clear winner in the survey was Virgin, which scored the highest in the performance stake and had an average ranking (5) in the demanding-ness category, giving it the lowest churn exposure rate of all nine carriers surveyed.

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