Churn Reduction and Margins

A typical ISP with 100,000 households and 18% annual churn loses ~18,000 households per year — at $60/month ARPU, that's $720 in lost annual revenue per household.

Broadband churn in the U.S. is roughly ~18–21% annually, based on industry surveys and telecom benchmarks.

Part 1 — Churn Protection

10,000 Mobile Subs (Year 3) 10% penetration of 100K household base

18% → 13.5% Churn Rate 25% reduction for bundled subs

450/yr Retained vs. 1,800 lost at baseline

$324,000 Protected Broadband Revenue 450 households × $720/yr

Part 2 — Mobile Margin

10,000 Mobile Subscribers 10% penetration rate by Year 3

$[XX] Annual Mobile Margin per Subscriber $[x]/line/month × 12 months

$[XX,000] Annual Mobile Margin $[x]/line/month × 10,000 subs × 12 months

Both figures are recurring. Both grow as attach rate increases. Neither requires a single new customer.

• The mobile revenue is the upside. The churn protection is the floor. Most ISPs undervalue the floor.
• The effect compounds: retained subscribers in Year 1 become long-tenure customers in Year 3
• Bundled subscribers are more likely to add other services — TV, smart home, VAS
• Churn reduction improves NPS, reduces support burden, and lowers CAC over time

Questions or clarification? Email us at [e-mail].