The Role of Peer Influence in Churn in Wireless Networks

Subscriber churn remains a top challenge for wireless carriers. In this paper, we look at the effect of peer influence on churn and we try to disentangle it from other effects that drive simultaneous churn across friends but that do not relate to peer influence. We analyze a random sample of roughly 10 thousand subscribers from large dataset from a major wireless carrier over a period of 10 months. We apply Generalized Propensity Scores to identify the role of peer influence. We show that the propensity to churn increases when friends do and that it increases more when many strong friends churn. Therefore, our results suggest that churn managers should consider strategies aimed at preventing group churn.