Tuesday, November 13, 2007

Echostar Churning

Echostar is the first to report consumer defects due to the credit crunch. Echostar also noted that churn was high due to high competition (i.e., cheap, short-term triple play bundles). Forbes.com has the full report.
Although the Englewood, Colo.-based company reported its net income jumped 43% as subscriber sales increased and costs to acquire new customers decreased, its churn rate, i.e. the numbers of subscribers who stopped service, shot up to 1.94% per month for the quarter compared to 1.76% in the prior year.

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