Wireless & Mobile Landscape

Verizon Wireless Rural Mobile Consumers: Why might they churn?

Because the overall number of mobile subscribers is no longer growing in the saturated U.S. mobile market, service providers must lure subscribers away from another provider if they want to grow their subscriber base. This is equally true for regional mobile operators and national operators.

Many in the mobile industry want to know why mobile subscribers churn. In other words, what specific factors increase the likelihood of churn? How do network quality, customer service, price, advertising and promotions, and other non-mobile services offered by a provider affect subscribers’ likelihood to stay with or leave their mobile service provider?

This market study analyzes the causes of churn for a particular segment of the mobile market – Verizon Wireless subscribers in rural (non-metropolitan) markets. All of the results are also presented for a national sample of respondents, in order to provide a comparison between trends for all U.S. mobile consumers and trends for Verizon Wireless rural mobile consumers.

In addition to looking at the possible causes of churn for Verizon Wireless rural mobile consumers, in this market study iGR also analyzes the recent churn rates for Verizon Wireless, the current churning behaviors of Verizon Wireless rural mobile consumers and U.S. mobile consumers, such as how long they have been with their current and previous providers, and Verizon Wireless rural consumers’ and all U.S. consumers’ perceptions of the network quality, pricing and customer service of the four major operators. The data in the study is based on two web-based surveys of more than 1,000 respondents that iGR fielded in November, 2015 (U.S. national mobile consumers) and March, 2016 (rural mobile consumers only).

Note that this market study can also be purchased at a discounted price as part of the AT&T and Verizon Wireless Rural Mobile Churn Package.


Key Questions Answered

  • What are Verizon Wireless’s churn rates currently and historically?
  • What percentage of Verizon Wireless rural consumers and U.S. mobile consumers have been with their current service provider for less than one year? More than one year? More than two years?
  • What percentage of Verizon Wireless rural consumers and U.S. mobile consumers have been with only one service provider?
  • How do advertising and promotions affect Verizon Wireless rural consumers’ and U.S. mobile consumers’ likelihood to switch providers?
  • How do bundled services, such as Verizon’s FiOS and AT&T’s newly acquired DirecTV, affect Verizon Wireless rural consumers’ and U.S. mobile consumers’ likelihood to switch providers?
  • How do Verizon Wireless rural consumers and U.S. mobile consumers perceive the network quality, pricing and customer service of the four major U.S. mobile operators? How could this perception affect their likelihood to churn from their current provider?
  • Why do Verizon Wireless rural consumers and U.S. mobile consumers who have stayed with their operator for more than one year do so? What, if anything, might make them change in the future?
  • How can a rural mobile operator get Verizon Wireless subscribers to churn away from the national operator?

Who Should Read

  • Regional mobile network operators
  • Wireless and Mobile advertising agencies
  • Mobile service retailers and distributors
  • Financial and investment analysts.

Table of Contents

  • Abstract
  • Executive Summary
    • Current Churn Behavior for Verizon Wireless Mobile Consumers
    • Verizon Wireless Stayers’ Behavior
    • Stay Because of Good Network and Coverage
    • Stay Because of Good Customer Service
    • Stay Because of Good Pricing
    • Triggering Churn
    • Recommendations for Rural Mobile Operators competing with Verizon Wireless
  • Methodology
  • Verizon Wireless Churn
  • Mobile Consumers and their Providers
    • Current Mobile Provider
    • Current and Previous Mobile Providers
  • Drivers of Churn
    • Advertising and Promotions
      • Awareness of Promotions
      • Likelihood to Follow Up
      • Leverage to Get a Better Deal
      • Got a Better Deal
    • TV and Home Internet Services
      • FiOS Services
      • AT&T and DirecTV
  • Effectiveness of Recent Verizon Wireless Advertising
    • Verizon Wireless Tag Lines
  • Consumers’ Perceptions of U.S. Mobile Operators’ Services
    • Ranking of Network Quality
    • Ranking of Customer Service
    • Ranking of Pricing
  • Why Mobile Consumers Have Stayed with Operators
    • Reasons Subscribers Have Stayed
      • Stay Because of Good Network and Coverage
      • Compared to Perceived Ranking
      • Specific ‘Good Network and Coverage’ Reasons
    • Stay Because of Good Customer Service
      • Compared to Perceived Ranking
    • Stay Because of Good Pricing
      • Compared to Perceived Ranking
    • Reasons Subscribers Might Change in the Future
      • Number of Customer Service Issues Subscribers Will Tolerate
      • Tolerance for Network Quality Issues
  • Consumer Demographics
    • Demographic Profile of Verizon Wireless Rural Consumer Respondents
  • Definitions
    • General
    • Device Types
    • Services
    • Network Technology
  • About iGR
    • Disclaimer

List of Tables

  • Table 1: Verizon Wireless Churn Rates for Q4 2015
  • Table 2: Verizon Wireless Churn Rates for 2007 to 2015
  • Table 3: Amount of Time with Current Mobile Service Provider
  • Table 4: Current and Previous Mobile Service Providers
  • Table 5: Awareness of Advertising and Promotions
  • Table 6: Likelihood to Act on Advertising and Promotions
  • Table 7: Using Other Providers’ Promotions
  • Table 8: FiOS Services Used by Verizon Wireless Rural Subscribers
  • Table 9: Awareness of AT&T Acquisition of DirecTV
  • Table 10: Likelihood to Switch to AT&T Wireless Due to of DirecTV
  • Table 11: Verizon Wireless Tag Lines
  • Table 12: Weighted Ranking of Provider Network Quality
  • Table 13: Weighted Ranking of Provider Customer Service
  • Table 14: Weighted Ranking of Provider Pricing
  • Table 15: Reasons for Staying with Current Mobile Service Provider
  • Table 16: Subscribers Who Stay for Network and Rank Their Provider as Best
  • Table 17: Specific Important Aspects of a ‘Good Network’
  • Table 18: Subscribers Who Stay for Good Customer Service and Rank Their Provider as Best
  • Table 19: Subscribers Who Stay for Low Priced Rate Plans and also Rank Verizon Wireless as Best
  • Table 20: Reasons Subscribers Might Change Providers
  • Table 21: Number of Billing or Customer Service Issues Needed for Change
  • Table 22: Number of Network Quality Problems Needed for Change
  • Table 23: Respondent Age
  • Table 24: Respondent Gender
  • Table 25: Respondent Ethnic Background
  • Table 26: Respondent Annual Household Income
  • Table 27: Respondent Level of Education
  • Table 28: Age of Children in Household
  • Table 29: Number in Household
  • Table 30: Employment Status
  • Table 31: Respondent Marital Status

List of Charts and Figures

  • Figure A: Amount of Time with Verizon Wireless
  • Figure B: Reasons for Staying with Verizon Wireless
  • Figure C: Reasons Subscribers Might Leave Verizon Wireless
  • Figure 1: Verizon Wireless Churn Rates for Q4 2015
  • Figure 2: Verizon Wireless Churn Rates for 2007 to 2015
  • Figure 3: Amount of Time with Current Mobile Service Provider
  • Figure 4: Current and Previous Mobile Service Providers
  • Figure 5: Awareness of Advertising and Promotions
  • Figure 6: Likelihood to Act on Advertising and Promotions
  • Figure 7: Using Other Providers’ Promotions
  • Figure 8: FiOS Services Used by Verizon Wireless Rural Subscribers
  • Figure 9: Awareness of AT&T Acquisition of DirecTV
  • Figure 10: Likelihood to Switch to AT&T Wireless Due to of DirecTV
  • Figure 11: Verizon Wireless Tag Lines
  • Figure 12: Weighted Ranking of Provider Network Quality
  • Figure 13: Weighted Ranking of Provider Customer Service
  • Figure 14: Weighted Ranking of Provider Pricing
  • Figure 15: Reasons for Staying with Current Mobile Service Provider
  • Figure 16: Subscribers Who Stay for Network and Rank Their Provider as Best
  • Figure 17: Specific Important Aspects of a ‘Good Network’
  • Figure 18: Subscribers Who Stay for Good Customer Service and Rank Their Provider as Best
  • Figure 19: Subscribers Who Stay for Low Priced Rate Plans and also Rank Verizon Wireless as Best
  • Figure 20: Reasons Subscribers Might Change Providers
  • Figure 21: Number of Billing or Customer Service Issues Needed for Change
  • Figure 22: Number of Network Quality Problems Needed for Change
  • Figure 23: Respondent Age
  • Figure 24: Respondent Gender
  • Figure 25: Respondent Ethnic Background
  • Figure 26: Respondent Annual Household Income
  • Figure 27: Respondent Level of Education
  • Figure 28: Age of Children in Household
  • Figure 29: Number in Household
  • Figure 30: Employment Status
  • Figure 31: Respondent Marital Status

For additional information on the Verizon Wireless Rural Mobile Consumers: Why they might churn? market study, please contact Iain Gillott, at (512) 263-5682 or by email.