Churn Management and Policy: Measuring the Effectiveness of Fixed-Mobile Bundling on Mobile Subscriber Retention

This article uses a Tobit regression model to investigate the factors affecting mobile subscriber retention in South Korea. The results show that fixed and mobile bundling plays a significant role in lengthening mobile subscriber retention, while its effectiveness varies depending on which fixed services are included in the bundle. The provision of 4G wireless broadband service (i.e., WiBro) in a bundle with 2G/3G mobile service showed a positive but insignificant relationship with mobile subscriber retention. In addition, previous relationship of a subscriber with an operator has a significant effect on mobile subscriber retention: Customers who recontracted remained longer with a contractor compared to those who changed operators. Monthly mobile payment has a significant but negative effect on mobile subscriber retention. Subsidy-bound contracts and gender had no effect on retaining mobile subscribers in the long term.