T-Mobile’s Postpaid Phone Churn Expected to Keep Improving

Previously, we learned about expectations for T-Mobile’s (TMUS) prepaid customer net additions in 1Q18. In this part, we’ll look at the company’s customer retention metric, its churn rate. T-Mobile’s postpaid phone churn should continue to improve in 2018, mainly driven by customer satisfaction and loyalty due to continuous improvements to its network quality and customer service. In 4Q17, T-Mobile reported a postpaid phone churn rate of 1.2%, lower than the 1.3% it reported in 4Q16. Lower churn helps mobile carriers save on acquisition costs related to acquiring subscribers, in turn expanding their operating margins.