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| Escape the Churn Trap |
The competition in the Scandinavian broadband markets is heavy and so is the churn burden with subsidized modems and terminals. On the other hand the competition has also stimulated the market and the Scandinavian market has one of the highest penetrations for mobile broadband in the world. The churn, however, is killing profitability for many operators.
What are the reasons for the high churn – well the heavy subsidies of course are part of the story in some markets especially in markets where the contracts are as short as 6 months and subscribers get used to getting a new subsidized modem just as often – but other matters play a role too – overselling the data rates, inadequate coverage and outdated assumptions on usage are other typical reasons for churn according to DanCell research shared with operators in workshops on Escaping the Churn Trap across Europe at the moment.
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