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It's hard not to notice the aggressive tactics T-Mobile US has been using to grab customers from its rivals over the last year, but once they've jumped ship, do they stay put? A new survey paints a pretty clear picture.
Wireless Week reported Tuesday that T-Mobile US is not only gaining new customers but actually keeping them once they're switched, with a new survey revealing one of the lowest churn rates in the wireless industry at only 15.4 percent.
"Churn rate" is an industry term for customers who defect to another carrier, and despite being widely criticized by subscribers and media alike, the two largest companies -- Verizon Wireless and AT&T -- manage to keep their churn rates reasonably low, with 17 and 11.1 percent, respectively.
According to a survey of postpaid customers conducted by Cowen and Company, fewer T-Mobile subscribers planned to switch providers than any other U.S. carrier -- a steep drop from the 42.9 percent from a survey conducted in the third quarter of 2013.
That just leaves Sprint, who currently holds the highest churn rate of the big four U.S. carriers with 31 percent -- but even that's an improvement over the 41.7 percent in the previous quarter. (That's the largest bar in the chart above.)
The survey also revealed that price has become the motivating factor for subscribers to jump ship instead of a specific device or better network. That could be bad news for Verizon and AT&T in the months ahead, especially now that T-Mobile US is paying customers' early termination fees to switch to the magenta team.
Follow this article’s author, J.R. Bookwalter on Twitter
(Chart courtesy of Cowen and Company)