> For the complete documentation index, see [llms.txt](https://docs.reachplatform.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.reachplatform.com/starter-kit/starter-kit/for-isps/deciding-on-mobile/churn-reduction-and-margins.md).

# 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.

{% hint style="warning" %}
Broadband churn in the U.S. is roughly \~18–21% annually, based on industry surveys and telecom benchmarks.
{% endhint %}

{% columns %}
{% column %}

### 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

<mark style="color:$primary;">**$324,000**</mark>\
**Protected Broadband Revenue**\
450 households × $720/yr
{% endcolumn %}

{% column %}

### 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

\ <br>

<mark style="color:$primary;">**$\[XX,000]**</mark>\
**Annual Mobile Margin**\
$\[x]/line/month × 10,000 subs × 12 months
{% endcolumn %}
{% endcolumns %}

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

{% hint style="info" %}

* 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
  {% endhint %}

{% hint style="info" %}
Questions or clarification? Email us at <hi@reachplatform.com>.
{% endhint %}


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