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Our online glossary is here to help you make sense of the terminology used in the cell phone industry. It covers mobile technologies, such as 3G and 4G, and even includes a bit of information on smartphone operating systems and the companies that make the cell phones and other mobile technology devices we all use.

What is "churn rate"?

Churn rate, as it relates to mobile network carriers, is the percentage of subscribers in a given time frame that cease to use the company's services for one reason or another. It is used as an indicator of the health of a company's subscriber base. The lower the churn rate, the better the outlook is for the company. For example, if a large U.S. carrier had 100 million subscribers at the end of the year, and a churn rate of 2%, it would mean that 2,000,000 of the carrier's subscribers left its service during that period. Churn rate, as reported by U.S. mobile carriers, is not affected by new subscribers that might sign on to replace those that left.

See Also: subscriber, carrier

Referred to by: blended churn rate

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