Data Summary
Operators will lose $6 billion in 2010 as a result of switching, inactivity and secondary accounts. 145 million mobile youth accounts will be churned in 2010. The number is expected to rise to 214 million in 2012.
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Background Article
Key Facts
- Operators will lose $6 billion in 2010 due to high mobile youth churn in India
- 145 million mobile youth accounts will be churned in 2010
- Introduction of Mobile Number Portability (MNP) will cause a spike in churned accounts
Article
High levels of secondary account ownership and customer churn in India continue to erode operator revenues. We expect the introduction of Mobile Number Portability (MNP) to compound this problem.
Operators are focused on winning new customers over managing existing ones. Indian youth show little brand loyalty opting to juggle multiple handsets and plans to obtain the best deal. The apparent inconvenience is offset by the rigidity of operator plans with many youth favoring one handset and plan for display or data services and another for cheap calls with friends.
Friends are key in the dissemination of data – youth value their opinion on services over the officially sanctioned voice of the provider. Tapping the ‘friend network’ is one way for service providers to build brand loyalty. Virgin mobile has already made strides in this area through their vTurk program which empowers college students by giving them the opportunity of on-campus internship with Virgin. In return Virgin gets insights into how youth use mobile services.
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