BOSTON-Online information from competing wireless carriers will actually facilitate churn and could lead to more than $3 billion in revenue loss for the industry during the next 12 months, according to predictive analytics firm Compete Inc.
According to Compete, approximately 10 million wireless customers use the Internet to manage their accounts, and more than 1 million of these customers exhibit pre-churn behavior, which includes evaluating carrier competitors online for future purchases. Compete expects 25 percent of online customers will exhibit pre-churn behavior to switch carriers in the coming months, following the upcoming implementation of wireless local number portability.
“Carriers are watching carefully as number portability nears because of the threat it presents to customer churn and the competitive landscape,” said T.J. Mahony, senior wireless analyst for Compete. “Analysis of timely consumer behavior of in-market wireless subscribers online will serve as the leading industry indicator of who the winners and losers will be.”
