Thread by @trengriffin

"Ten basis points of churn is a billion dollars,” says Donovan, who runs AT&T’s wireless, DirecTV and wired broadband. fortune.com/longform/att-m…

Bundling can lower churn. Costs of other services impact COGS.

Mufasa: "All LTV factors interact in the Great Circle of Life Simba."

Once upon a time in the mobile business what Buffett talks about here was referred to as the "you can only talk on your phone so many hours in a day problem." Of course, people don't talk much on their phones any more and leaving voicemails is what you do to people you don't like

QUIZ: When he said "Ten basis points of churn is a billion dollars" was he referring to revenue, cash flow, accounting earnings, lifetime value or some other financial metric?

HOMEWORK: Use this spreadsheet from David Skok dskok-wpengine.netdna-ssl.com/wp-content/upl… and some assumptions about churn etc to model a 30 basis point reduction in churn on a per customer basis. Watch changes in LTV. Full article, including a downloadable spreadsheet is: forentrepreneurs.com/ltv/

What assumptions are you using in completing the homework if you took up the challenge? Are you looking for the inputs for the model in places like this? investors.att.com/~/media/Files/…

Someone said the direct link to the spreadsheet dskok-wpengine.netdna-ssl.com/wp-content/upl… doesn't work. If so you can find it in the article. forentrepreneurs.com/ltv/