How telecom brands can slash churn without slashing prices

Zach Holmes13 Jun, 2025Other

The U.S. telecom industry is experiencing a churn problem. With aggressive offers from MVNOs, bundled Wi-Fi deals, and mobile plans offering free devices, switching providers is easier than ever. And customers are taking advantage. Monthly churn rates average 1.8% for postpaid plans and over 4% for prepaid customers. Let’s put that in perspective. A telecom provider with 100,000 customers losing 2% monthly churns 24,000 customers annually. At $50 average monthly revenue per user (ARPU), that’s $14.4M in lost revenue every year. Worse, acquiring a new customer can cost $300–$450, turning churn into a double hit: lost income and high replacement costs.