Report exposes rampant prepaid churn in APAC operators

Prepaid churn so high in APAC that operators must replace their entire subscriber base every two years, on average. Mobile operators have to change their relationships with prepaid customers in order to change the churn dynamics. Reducing churn by 20% means an operator’s subscriber acquisition cost expenditure would fall by 18 percent – a 0.5% reduction of prepaid OPEX – and improve prepaid EBITDA by 0.8%. We want to prove that by saying ‘YES’, both prepaid customers and operators win.”The report, Death by a Thousand Nos: Putting the Profit Back into Prepaid, is available for free download here. To put that into context, subscriber acquisition costs accounted for 2.9% of prepaid OPEX and 1.8% of prepaid service revenue.

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