• by Jack Loechner , Staff Writer @mp_research, September 6, 2006

Based on a telephone survey of 752 US consumers in the Spring of 2006, In-Stat reported that 10 percent, or more, of communications service users, whether it be home phone, wireless phone, Voice over IP (VoIP) or Internet plan to switch providers in the next 12 months. The majority of respondents, however, indicate that they are satisfied with their communications service.

The top drivers of this potential churn say that high pricing is the primary driver for changing all services, impacting roughly half of subscribing respondents for each service (except Internet, for which price is important to fewer respondents).

In-Stat also reports that:

• Relocation is comparatively a more significant churn factor for wireless versus Internet or home phone, as is poor bundling options.
• Quality of service, service offering, and convenience are, comparatively, more significant churn drivers for Internet than wireless or home phone.
• Compared to 2005 results, customer service and quality of service declined in importance, and lack of bundles increased as a churn driver.

According to the Survey results, respondents indicate that:

• 13 percent planning to cancel their Internet service within 12 months
• 12 percent of respondents planning to change wireless service.
• 9 percent anticipated home phone churn
• 4 percent plan to change VoIP

Providers must continually campaign for new subscribers, concludes the report, not to grow the business, but simply to maintain subscriber levels. The research suggests that bundled packages and loyalty reward programs do appear to have a positive influence in reducing churn.

The complete PDF report is available from InStat through this link.