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Ting Mobile’s Customer Turnover Rate Worsens In Q3, Despite Gaining 3,000 New Sign-Ups

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During the third quarter of this year, mobile virtual network operator Ting Mobile saw its churn rate get worse, even though it managed to add over 3,000 new accounts and 8,000 devices over the three-month period. From the 2.4 percent it posted during the second quarter, the carrier’s customer turnover rate has risen to 2.8 percent in Q3. Still, the MVNO enters into the final quarter of 2016 with a total of 147,000 accounts and 235,000 devices to its name.

In Q3 2016, Ting Mobile is also reporting $18.4 million in wireless service revenues, which represents an improvement over the $15.4 million it posted during the same quarter one year ago. As revealed by Elliot Noss, the chief executive officer of Ting, the company has shown growth in both Ting Mobile and Domain Services (apart from wireless and fixed-line services, Ting also sells domain names) by registering a 11 percent year-over-year increase in total revenues. Moreover, the company also recorded improvements in terms of net income (up 50 percent to $4.7 million) and EBITDA (up 48 percent).

Noss is expecting the next quarter to be even more competitive than Q3, especially after cable companies have started going into the MVNO market. For instance, cable giants Charter Communications and Comcast have already bared their respective plans to introduce wireless services to customers in the next few months.

As an MVNO, Ting Mobile leases network capacity from major US wireless carrier Sprint. However in the later part of 2014, the operator started supporting a GSM network, which many speculate to be T-Mobile’s.

Earlier this year, Ting  picked up 3000 customers by offering free service to customers of failing T-Mobile MVNO PTel Mobile. 1000 of those customers left when their free service ran out. For a decade and a half, PTel had been an MVNO using T-Mobile’s network, but it discontinued its operations back in February early this year.


Source: FierceWireless

13 comments:

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  1. If Ting bought out Ptel, why did Ptel shut down with so little notice?

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    1. Tucows buying PTel comes from Fierce Wireless' story today about Tucows' Q3 results. That story is the first and only place I've seen the claim that Tucows bought PTel and I have serious doubts whether it's correct. There's no mention of that acquisition in either the Tucows Q3 financial report or in the transcript or in yesterday's Tucows investors conference call. I don't know where Fierce got that information. I've emailed Colin Gibbs, the author of the Fierce Wireless story, asking him for his source for the claim that Tucows bought PTel.

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    2. Collin Gibbs replied to my email saying he believes he was mistaken in saying that Tucows had acquired PTel. I've updated the post to indicate that Ting acquired customers from Ptel rather than purchasing the business.

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  2. @Christine Torralba can you please corroborate Ting(Tucows)purchasing P-Tel?

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  3. Tucows? Not cool, primarily a malware download site like C-NET.

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  4. With such high prices for data I'm amazed Ting attracts customers

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    1. High prices and a poor Network that can only be used in a small part of the country.

      I'm sure they only succeed at all due to the ignorance of consumers.

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  5. The Ting strategy is interesting but the $6 per device fee kills the value proposition for me. But if they really are responsible for killing PTel... wow.

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  6. But I don't think that's what happened. The references to losing PTel customers are more likely about customers whom Ting lured with special offers.

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  7. Hofo ID Grateful4AdviceNovember 9, 2016 at 11:09 AM

    That's right. Ting did offer a generous inducement for PTel customers. $75 I think

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  8. Good grief, cable companies are getting into mobile? I can picture it now--Comcast Mobile, the only prepaid MVNO with a contract. Yes, prepaid with a contract. They'll manage it.

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  9. every few months I get a survey from Ting, and every time I give them a 0 out of a possible 10. They can't compete on coverage. sprint? nope. Tmobile? nope. They can't compete on price. 5 person family plan at cricket is $100 flat. each line has unlimited talk/txt/2.5Gb data. Meanwhile if a person tried to replicate that on ting, it would cost a person $80-something for just ONE line.

    I still had 1 line at ting, never used, just chewing up my $100 port credit. Once I sent 2 texts and got charged over $11 that month lol.

    They like to position themselves as ultra low cost, but they really aren't. Due to their crappy tiered structure, 33 minutes of talk, 55 txt and 77 mb of data would be over $15 a month!


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  10. 90,000 Consumer Reports subscribers rated Ting #2 overall in wireless, 1 point behind the perennial winner, Consumer Cellular. Both earned the highest rating for Value.

    Republic Wireless had another excellent year, coming in 1 point behind Ting.
    Cricket climbed to 4th place, and PagePlus earned the #5 spot.

    These companies were the only ones surveyed to get top marks for Value in the survey.
    You can see the full scores here:
    https://www.consumercellular.com/Content/PDFs/Consumer%20Reports%20-%20Cellphone%20Service%20Ratings.pdf

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