(Length: 13 pages)

This is a Consumer Technographics document

January 31, 2006

Who's Winning And Losing Mobile Subscribers

Verizon Wireless Is The Beneficiary Of Cingular's Churn

This is the final document in the "State Of Mobile 2005" series.

by Charles S. Golvin

with Chris Charron, Sally M. Cohen, Remy Fiorentino, Tenley McHarg

Executive Summary (This is a document excerpt)

More than one in four of last year's mobile households dumped its carrier — 24% switched to another provider, while 5% gave up their mobile service altogether. Movement among subscribers is not evenly distributed: Verizon Wireless gained most at Cingular's expense, while Verizon lost subscribers disproportionately to T-Mobile and Nextel. And carriers should brace themselves for more bad news: Those customers who plan to switch are among the most valuable — they pay 20% more for service and are more avid users of revenue-generating applications like picture messaging and ring tones.

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TABLE OF CONTENTS

NOTES & RESOURCES

itemOne In Four Mobile Users Dumps His Carrier

itemWho Were The Churn Winners And Losers?

itemCarriers Benefit From Varied Competitors

itemChurn Is Not Always Premeditated

itemValue, Service Quality Drive The Itch To Switch

recommendations

itemPrepare For A New Wave Of Churn

We drew from Forrester's Consumer Technographics® 2004 and 2005 North American Benchmark Studies and performed longitudinal analysis on the set of common respondents to these studies. We also used Forrester's Consumer Technographics Q2 2005 North American Survey.

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Analyst: Charles S. Golvin
Technology: Data Services, Mobile Services, Telecommunications Services, Voice Services
Industry: Consumer Technology Adoption, Consumer Telecommunications, eBusiness/eCommerce, The Mobile Channel
Geography: North America