Verizon Wireless reduces churn to 2%
US mobile operator Verizon Wireless has acquired 1.1 million new retail customers (net) in the second quarter 2002 - an increase of 34% on the same quarter last year - and retail churn is down to only 2.0%.
The firm reports that its retail customer base grew by 12% to 28.9 million year-on-year, and cites its aggressive churn management as a major factor in that growth. Retail customers now represent more than 95% of the company's total customer base, and 98% of its total revenue.
Lower churn The company has focussed on network strength (including the company's national 1X network), high-value contract price plans and churn management initiatives. In the second quarter 2002, total customers increased by 723,000 to 30.3 million, representing an 8.5% increase year-on-year. The retail churn of 2.0% was down from 2.2% the previous year. Total company churn, including retail and wholesale, was 2.3%, remaining level with the same quarter the previous year.
WorldCom handover The company's reseller base decreased by 378,000 subscribers during the quarter, closing at 1.4 million resale customers. Verizon Wireless and WorldCom have signed a referral agreement to facilitate some of the remaining 310,000 WorldCom customers entering into contracts directly with Verizon.
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