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Churn is a constant in the telecoms space, but right now it’s more topical than ever.
In this blog I’ll share insights into telecoms churn in 2023, along with advice on how MSPs can turn it into an opportunity by offering brilliant service.
What’s covered
- What is churn?
- 2023 churn trends
- The opportunity for digital transformation
- How to contact me
- Useful links
What is churn?
Churn is the percentage of customers who are cancelling a licence-based service.
Churn can happen in any business, but it’s usually associated with the telecoms sector because most services are licence-based. Think old-school telephone lines, which customers pay for monthly.
2023 churn trends
The telecoms channel is hyper-competitive right now, here’s why:
The UK is upgrading to digital phone lines
Openreach is winding down the old but faithful copper-based network that’s served the UK for over a century – RIP.
For any telecoms reseller that provides services that sit on Openreach’s Public Switched Telephone Network (PSTN), churn is guaranteed.
By the end of December 2025 traditional telephony like fixed lines and calls, and any connectivity that relies on the old copper network (e.g. ADSL and FTTC), will no longer exist.
Openreach’s intention is to force a country-wide digital upgrade – that’s great news for pretty much everyone, because digital is better.
UK fixed voice service revenues totalled £1.42bn in Q3 2022; a decrease of £21m (1.5%) from the previous quarter and £97m (6.4%) year-on-year. Ofcom – Telecommunications Market Data Update, Q3 2022
While this has been on the agenda for as long as I can remember, movement is still much slower than expected, meaning there’s a huge spike of activity yet to happen in the run-up to 2025.
This means – massive opportunity for anyone who can offer digital replacement solutions.
That opportunity is open to anyone, not just those businesses that have always operated in the telecoms space.
Smart MSPs know that voice and connectivity are natural cross-sell opportunities for any customers who already take IT services.
Sadly, there’s a threat brewing in the telecoms sector for anyone who is still billing their customers for the old, copper-based products. Either they help their customers to upgrade before the 2025 deadline, or someone else will.
Find out more – Openreach: Upgrading the UK to Digital Phone Lines
The usuals
There are low barriers to customers switching their telecom supplier, which means there’s always going to be a lot of movement in this space.
There are all sorts of reasons why a customer might decide to switch, but service is right up there. This creates an opportunity for anyone who is doing service really well, and as a marketer, I find that genuinely exciting.
What’s your view?
I don’t have all the answers – there’s a real blind spot in the industry generally because of a lack of data.
I’m on the hunt for more information and will update this blog post as I find it. I’m keen to hear from anyone who wants to talk about the trends they’re seeing right now. Email me – Louise Abbey – if you’d like a churn chat.
The opportunity for digital transformation
Openreach’s 2025 digital upgrade creates a unique opportunity for proactive MSPs. Use this opportunity to engage with new and existing customers and help them to realise their own digital transformation.
Voice and connectivity is no longer restricted to telecoms.
Did I mention I love service?
I’m on a mission to make businesses more profitable by making customers the number one focus.
I’ll happily talk to anyone who shares my obsession with service. If you’d like to chat call me on our main number, or send me an email – Louise Abbey.
Useful links
Openreach – Upgrading the UK to Digital Phone Lines
Openreach – How do we move smoothly onto the digital network?
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