Postpaid vs. Prepaid churn rateChurn rate is defined as a monthly percentage of customers who discontinue their subscription to the service during a specific period. T-Mobile US uses churn to gauge customer retention and loyalty, which is useful information for evaluating the operating performance of a business.
While the postpaid contract is the most popular subscription type, the company also offers prepaid services. The prepaid subscriber churn rate was higher than that of postpaid customers, by almost two percent in the second quarter in 2022. This figure fluctuates regularly, although it decreased considerably compared to the previous quarter.