Jun 21, 2005 06:59
19 yrs ago
5 viewers *
English term

churn

English Bus/Financial Finance (general)
European mobile operators are experiencing margin pressure driven by slowing elasticity in demand for 2G services, rising churn, coinciding with accelerated 3G migration.

I don't understand the meaning of "churn" in this context. Any suggestion?
Thank you!

Responses

+11
2 mins
Selected

switching

It means switching from one provider to the other - a common feature in the mobile phone sector.

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Note added at 5 mins (2005-06-21 07:04:22 GMT)
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2 Churning

Churn means the discontinuation of a contract with a business [Brown 00]. In many European countries market structures of wireless telecommunications have changed in the last years form monopolistic to very competitive markets [Edmonds 97]. To be able to control and reduce the customer churn rate may be a vital factor for the survival of mobile phone companies [Edmonds97]. In particular it would be necessary to prevent the churning of profitable customers. If it is possible to predict whether a customer is likely to churn in two months, given today’s customers record, appropriate action on the side of the business may prevent the loss of the customer. In order to prevent the churning of customers, however, it is necessary to know WHO the churners are. Furthermore it is important to know WHY a customer decides to discontinue a contract.

http://66.102.9.104/search?q=cache:9r8-0EEINB0J:www.mathemat...

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Note added at 17 mins (2005-06-21 07:16:03 GMT)
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Churn rates — the proportion of subscribers who switch from one operator to another each month — soared. In three years, 5m subscribers switched operators and kept their numbers, in a territory with a population of 7m. The lesson for America\'s hyper-competitive mobile industry, it seemed, was clear: portability would be great for users but terrible for operators.

http://www.economist.com/displaystory.cfm?story_id=2249318
Peer comment(s):

agree ahmadwadan.com
29 mins
agree Merit : yes
48 mins
agree GingerR
2 hrs
agree Vicky Papaprodromou
3 hrs
agree Robert Donahue (X)
3 hrs
agree airmailrpl : -
3 hrs
agree Nick Lingris
4 hrs
agree Victor Potapov
7 hrs
agree Saleh Chowdhury, Ph.D.
9 hrs
agree Linda 969
1 day 16 hrs
agree Romanian Translator (X)
205 days
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4 KudoZ points awarded for this answer. Comment: "Thank you very much Ian! I've never seen a KudoZ answer with so many sopporters..."
-3
8 mins

3. To buy and sell (a client's securities) frequently, especially in order to generate commissions.

Peer comment(s):

disagree IanW (X) : This has nothing to do with securities - it refers to customers switching from one provider to another regularly
9 mins
disagree ahmadwadan.com : Dictionary meaning is ok but this meaning is far away from context.
13 mins
disagree Charlesp : ;-(
56 mins
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