Churn reaction: what's happened to mobile switching?

May 2022

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Mobile networks and connectivity

Digital Consumer

Churn reaction: what's happened to mobile switching?

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A rare positive for mobile operators during the pandemic has been a decrease in the level of customer switching (churn) following the closure of retail outlets. In most countries, retail shutdowns took effect in the first wave of lockdowns during March-May 2020 and continued on and off through to the first half of 2021. However, was the churn reduction pandemic-induced? And is churn likely to continue coming down?

In short, churn was already on a structural downward trend and could fall further - though a shift back upwards is likely once economic conditions stabilise. This provides a short timeframe to prepare for a new consumer marketplace competing on green credentials, shrewd content bundling and the metaverse.

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