T-Mo Pushes Back on Churn Rate

In our April 11 article, “Will MNO FWA Demand Hold Up?”, we offered some explanation as to why T-Mobile 4Q22 net adds had declined in the high-flying fixed wireless access segment.

Here’s what we said: “Explaining the 4Q22 decline, T-Mobile acknowledged that net adds were ‘partially offset by increased deactivations from a growing customer base.’ Those deactivations created a substantial churn rate of over 10 percent on a relatively new, small customer base suggesting some level of dissatisfaction.”

Without providing a number, T-Mobile says the churn rate was not that high. On recalculation, we estimate the churn to be closer to 2.5 percent.

We also said: “By the end of 2023, T-Mobile expects 5G Home Internet will be available to 50 million” households. T-Mobile says its 5G Home Internet is available now to over 50 million homes with roughly one-third of those located in rural areas.

T-Mobile confirmed that it still expects to have 7-8 million FWA subscribers by the end of 2025.

Ed: Business Editor John Celentano will be moderating a Connect-X panel titled, “FWA: Is it a stop-gap measure or long term solution?” on Tuesday, May 9, at 9:10 AM in R05. Panelists include: John Hunter from T-Mobile, Rebecca Murphy Thompson from UScellular and Apasia Paroutsas with Qualcomm.

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