Users of Predictive Analytics within telecom sector can look into an interesting side effect of the iPhone – AT &T agreement. With Google also jumping into the market with it’s Droid – the new norms in Telecom agreements is lockedin contracts for consumers. While this is permitted by the telecom regulators as fair to competition- this also means that there is very little churn within these locked in contracts. This leads to further savings for the telecom provider allowing them to have higher profits and even share the profits by price decreases-
and thus the traditional bug bear of telecom analytics churn modeling is slowly losing importance to plain vanilla reporting or better data mining dashboard like solutions. Lower Churn , means also lower costs on analytics softwares to predict churn.
As competition within the 3G Mobile market ramps up due to Google’s entry and licensing with partners exclusively- the trend will likely increase for reduced churn due to locked in customers.Even existing mobile providers can offer discounts to lock in customers for not switching ( especially in Mobile Markets like India- where I have personally interacted with large players like Bharti) and China which has even bigger mobile market.
Ergo Lower need to buy softwares that predict churn-
See Below Image from TeraData’s Churn Model.