Wednesday, May 30, 2018

Merged Sprint and T-Mobile US Might Reduce Switching Between Them about 4% Per Year

Most T-Mobile US and Sprint customers who actually make a service provider change go to AT&T or Verizon.

Only about four percent of switchers moved from Sprint to T-Mobile US, or T-Mobile US to Sprint, HarrisX says. One might argue, based on that bit of evidence, that the reduction in mobile service provider competition in the event of a T-Mobile US merger with Sprint would be rather minimal, at about four percent per year.

You might have expected that. In virtually all telecom markets, when churn happens, the losses disproportionately accrue to the leading providers with the most market share, as they simply have bigger customer bases to lose.

In a recent survey, 52 percent of current T-Mobile US customers came from AT&T and Verizon, about 17 percent from Sprint, the rest from other suppliers. Roughly the same percentages apply for current Sprint customers.

Some 49 percent defected from AT&T or Verizon. About 17 percent came from T-Mobile US, and the balance from other service providers.




The study was conducted online between February 9-12, 2018, among 2,517 adult (18+) U.S. mobile consumers.

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