T-Mobile has a reason to celebrate and it’s doing so happily.
At yesterday’s Oppenheimer investor event, T-Mobile US EVP and CFO Peter Osvaldik talked about the low churn rate of the company. He credits this to the improved HD Voice feature that T-Mo was able to offer first among its rivals. Osvaldik shares that they have “always been hyper focused on this.”
By being able to offer HD Voice first, T-Mobile was able to gain high satisfaction levels with its customers. And this is pretty evident with its network performance churn rate. The executive then shares that voice is the feature that customers are least forgiving of since “They don’t want their calls to drop.”
Customers want coverage and with T-Mobile’s HD Voice, they are able to enjoy it. And the results of this can feature is pretty visible with their current churn rate; which is currently “the best churn in the industry.”
Osvaldik is referring to the 0.87% postpaid phone churn rate during Q2 2021. This is a far cry from the 1.18% churn rate they saw in FY 2018.
The new churn rate can’t be attributed to its decision to merge with Sprint alone. In fact, Sprint frequently experienced the highest churn rates in the industry.
Instead, Osvaldik believes the low churn rate is due to the carrier’s continuous improvements in their LTE and 5G networks.
You can read more about the highlights of the presentation here.