In the third quarter of 2019, the Sprint Corporation’s churn rate was 1.98 percent for postpaid subscribers. The company’s postpaid churn rate is significantly lower than its prepaid churn rate. The churn rate is a measure of the number of customers leaving the provider during a given time period, often in a contractual context, and can be interpreted as an indicator of customer satisfaction.
Changes in Sprint’s churn rate
Overall Sprint’s churn rate has slightly decreased since 2008, though it is still one of the highest amongst its competitors. There were several quarterly jumps in the past decade, most notably in the second quarter of 2013, around the time when Sprint was acquired by SoftBank for 20.1 billion U.S. dollars, with the resulting shift in management perhaps causing dissatisfaction and ensuing departure amongst Sprint customers. Since 2015 Sprint has managed to keep its postpaid churn rate below two percent.
Sprint in comparison
The Sprint Corporation’s main competitors are U.S. wireless telecommunications companies AT&T, Verizon, and T-Mobile. All four major wireless providers in the United States currently have a churn rate below two percent for postpaid subscribers. Sprint has the highest postpaid churn rate, followed by AT&T and Verizon. T-Mobile has successfully worked on retaining more of its customers in recent years reporting a constant drop in its churn rate over the past few years to below one percent.
Postpaid churn rate of Sprint Corporation from 1st quarter of 2008 to 3rd quarter of 2019
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* In the quarter ended June 30, 2017, the Company enhanced subscriber reporting to better align certain early-life gross activations and deactivations associated with customers who have not paid them after the initial subscriber transaction. Without this enhancement, total postpaid churn in the quarter would have been 1.73% versus 1.65%.
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Sprint Corporation. (January 27, 2020). Postpaid churn rate of Sprint Corporation from 1st quarter of 2008 to 3rd quarter of 2019 [Graph]. In Statista. Retrieved August 25, 2024, from https://www.statista.com/statistics/219814/postpaid-churn-rate-of-sprint-nextel-by-quarter/
Sprint Corporation. "Postpaid churn rate of Sprint Corporation from 1st quarter of 2008 to 3rd quarter of 2019." Chart. January 27, 2020. Statista. Accessed August 25, 2024. https://www.statista.com/statistics/219814/postpaid-churn-rate-of-sprint-nextel-by-quarter/
Sprint Corporation. (2020). Postpaid churn rate of Sprint Corporation from 1st quarter of 2008 to 3rd quarter of 2019. Statista. Statista Inc.. Accessed: August 25, 2024. https://www.statista.com/statistics/219814/postpaid-churn-rate-of-sprint-nextel-by-quarter/
Sprint Corporation. "Postpaid Churn Rate of Sprint Corporation from 1st Quarter of 2008 to 3rd Quarter of 2019." Statista, Statista Inc., 27 Jan 2020, https://www.statista.com/statistics/219814/postpaid-churn-rate-of-sprint-nextel-by-quarter/
Sprint Corporation, Postpaid churn rate of Sprint Corporation from 1st quarter of 2008 to 3rd quarter of 2019 Statista, https://www.statista.com/statistics/219814/postpaid-churn-rate-of-sprint-nextel-by-quarter/ (last visited August 25, 2024)
Postpaid churn rate of Sprint Corporation from 1st quarter of 2008 to 3rd quarter of 2019 [Graph], Sprint Corporation, January 27, 2020. [Online]. Available: https://www.statista.com/statistics/219814/postpaid-churn-rate-of-sprint-nextel-by-quarter/