Churn hurts Cricket’s third quarter subscriber additions

One killer in the wireless industry is churn, the percentage of customers who packed up their things and left. This is an even bigger issue in prepaid, where a contract doesn’t tie a customer to a service. Cricket announced their third quarter results yesterday, and churn stood out. It was at 5.4 percent, up a full point from the second quarter 2009 and up 1.2 points from the third quarter 2008. That hurt their subscriber adds, which clocked in at 116,000. They added 156,000 in the same period last year, and 203,000 in the second quarter of this year. Their average revenue per user (ARPU) fell, but that’s likely because they added more features to less expensive plans. Cricket ended the quarter with 4.65 million subscribers.

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