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View Full Version : Churn at Three is greater than 60%



3g-g
24th May 2005, 01:08 AM
How can a business run like this?

https://talk3g.co.uk/showthread.php?p=2624#post2624

3GScottishUser
24th May 2005, 01:14 AM
Things are unlikely to improve soon either as LG customers are offered more of the same to upgrade. The 7600 seems to have been a 'flash in the pan' fashion thing that now looks well past its sell by date and a churn certinty.

No wonder CPW were so happy dishing that stuff out last year..... they knew they would be able to line their pockets this year when the customers contracts expired. Another win for the retailers.

Score so far: Retailers 2 ..... Hutchison 0

Oh well!

Hands0n
24th May 2005, 09:20 PM
How can a business run like this?

I think that the simple fact of the matter is ............. It can't!

I feel a mini-rant coming on :)

Which is an utter shame on Three's executive board and various levels of management. They have collectively failed to grasp the nettle and solve the problems at the shop. They have not realised that technology by itself will sell wholesale - which is why their general punter cares not if it's 3G or any other G for that matter. HSCSD? Who gives a cr*p except us enthusiasts? 4G? Ditto! Is this really so difficult for them to grasp? I don't see the BBC or ITV telling us what its network technolgy is based on! If they did, would we really care and watch that channel more than the others?

I personally think that it is in the interests of the mobile ops (all of them) to ignore the technology and concentrate on what they can practically use it [3G] for to stimulate the punter's interest. Identify that there are many more markets than "Chav" and target them also. Content, it seems, is where it is at and 3G is merely an "enabler" to deliver such content in a timely manner.

If they really must discuss the technology keep it vague - reference to stuff that we already have an idea of such as "Broadband speed to your handset" might just make us sit up and listen. But then again, if we are generally not used to drawing content down to our handsets maybe the point will be lost on us entirely, exactly as 3G generally seems to be!

Tariff is a major factor - if it really is cheaper to deliver voice and SMS on 3G then make it so for the punter rather than bottom-feed off of the increased margins benefits of the technology.

Make videocall as cheap if not cheaper than voice (burn the Heretic!) to stimulate the market. Bring voice down later once videocall becomes more of a norm - their own network stats will prove when the point is reached. Make the market work, don't just sit there waiting for it to happen 'cos we all like 3G as a technology. The survey shows otherwise!

In the final analysis, buying mobile telephony these days is a commodity choice. How much is it going to cost me? Content? How much is it going to cost me? Too much? I'll go elsewhere.

Lucky for Three and all the other mobile ops, there is a hardcore of IT enthusiasts (us lot who tend to visit forums) to keep things ticking over. But I wonder really if we are sufficient to make a real difference between success and failure of Three. I suspect that we are not.

Shame they don't turn Three over to us lot on this forum. I reckon we'd have it turning a profit within six months!!

Ben
25th May 2005, 02:02 AM
Excellent 'mini'-rant! :D

On the subject of selling a network technology rather than actual services, I can't help but want to mention Orange TV. Now, I know I haven't used it yet, and wont do until Friday, but products like Orange Music Player (yes, ok, dire quality, but that will hopefully be addressed in the future), Orange Fireplayer and Orange TV that become properly operable over 3G are actual products/services that people will want to buy. Orange can sell a phone on the back of these services. They can show people the immediate advantages of them and why they might use them. Just selling a handset on the back of '3G' doesn't work! 3G? Why would I want that?

Three have tried to sell their product on the back of video clip highlights of foodball etc. What's missing is REAL content/services. What's clever about Orange is that they're encapsulating each service into a handset application, making it a real entity that the user can manipulate - not a mysterious set of web pages contained within a small browser window. Data-centric applications will drive 3G, and Three's entire attitude towards data is damaging that prospect in the short term, but in the long term will just damage themselves.

The 'reported' levels of churn are surely an indicator that Three is lacking in these respects as much as in anything else.

3GScottishUser
25th May 2005, 06:44 AM
There appears to be a pattern debeloping in the mobile marketplace.

Witness what the last couple of weeks have brought us.

Innovation in terms of new services with products like Orange's 3G TV service and on products with Vodafone's 'Simply'. Tarriff innovation again from Vodafone with 'Stop the Clock', an off-peak incentive that does not affect core tarriff income but could be appealing enough to see of competition especially from those targetting younger folks who dont have landlines and use mobiles in the evenings and wekends.

What are 3 doing in the UK - giving away (mainly unfashionable) handsets and throwing lots of money at dealers to offer now familiar £0.00/£2.99/£4.99/monthly half-price line rental deals with restricted functionality.

The battle lines seem pretty clear now, it's price vs innovation/reputation.

What strategy do you think will succeed?

Hands0n
25th May 2005, 03:16 PM
I actually think that Orange have some kind of bona fide strategy whereas the others do not seem to know for sure.

Three have had an eternity to develop their strategy and have ended up with a right old hodge podge of things on their portal.

If I had to vote who would be top 3G player by year end my money would be on Orange right now.

apoc_reg
15th August 2005, 03:45 PM
But am i not right in saying that orange charge while your browsing there 3G network? thats whats putting me off orange at the moment.. also they need billing/account (minutes etc) on there 3G network. something 3 offer that is incredibly useful

Ben
15th August 2005, 04:08 PM
Orange charge you for browsing their intranet 'Orange World', yes. This is often reflected in the price of the downloads. Orange, unlike Three, allow you to browse anywhere you want though - for instance I make great use of browsing bbc.co.uk/mobile as a far better news resource.

Orange's data charges are also the most reasonable available. Not only do you have a whopping 1GB of data to use as you please for your first three months but by purchasing a data bundle such as Orange World Access 10 (£8) you can get a per mb charge of just 80p. Compare that to up to £7.50 on other networks, and a complete inability to browse (and use applications like Agile Messenger) on Three, and while still expensive it's clear that there's real value for money there.

A billing section on Orange World is needed though, yes. My Three is a very good application, though even that does not go far enough.

Hands0n
15th August 2005, 04:42 PM
Three may well lead the way with their "My Three" implementation. It is good, and like Ben says, could go further. That, however, is what I read a while back (cannot offer citation or link at this precise moment) that Three's strategy was for "self help" being made available to customers for all but the more complex of needs. The latter being where their Customer Service (sic) operation comes in. It has long been a hope of mine that if they really do develop My Three into the pinnalce of self help that they want then the Mumbai lot can be disbanded as a very bad thing.

Will Orange, Vodafone and the others follow such a lead? I suspect that the will. It makes complete sense in financial terms and mirrors what we have already come to expect of our humble Banking facilities. I really cannot recall the last time I actually visited my bank for anything other than paying in a pile of cheques.

On the matter of Data Charges - they all charge way to much for these. It is, of course, entirely artificial in my opinion.

dgilbert2
19th August 2005, 02:53 PM
For me the high churn rate of 3 is caused by a number of factors;

1) Current cheque back deals no longer make it economical to stay beyond the original 12/18 month contract period.

2) 3 customer services. Any one who has a problem knows its almost impossible/incredibly difficult to get sorted.

3) Dial up data not permitted.

4) The "Walled garden"

5) Dropped calls when going from 3G to 2G.


I wonder how many 3 contracts are used for voice calls only due to the good tariff deals, with people not intersted in the 3G stuff?

For 3G technology and mobile internet the other networks, in my view, are now superior. I admit though that 3 has the better coverage at the moment.