News release

Date: 2nd February 2012

fonYou calls on operators to fight churn with cloud services

Up to 50 per cent reduction seen across three networks

February 2nd 2012 - Adopting cloud-based services can help operators reduce churn by as much as 50 per cent according to data on customer behaviour monitored by innovative mobile cloud telephony provider fonYou Telecom.

With almost 500,000 customers now using fonYou services across three networks, the operator has been able to track user behaviour and compare churn rates against industry norms as well as look at changes in ARPU.

Examining figures from the last six months, fonYou CEO Fernando Nunez Mendoza says there is no doubt that the addition of a cloud-based second line service or the adoption of cloud storage and service management tools both reduces churn and increases ARPU.

“In terms of churn, the numbers vary between pre-pay and contract customers,” said Mendoza, “and there are some differences that are age and gender related.

“We have found churn reduction is at its greatest among the younger contract customers, with rates among those in the 25-30 age group falling by as much as 50 per cent,” he said.

fonYou’s data shows that churn was reduced across all customer groups by between 20 and 50 per cent with an average reduction of around 30 per cent. With accepted industry-norm figures putting the cost of churn at €300 per customer per year, fonYou believes that the potential savings available to operators through churn reduction are considerable.

Furthermore, in terms of increased ARPU, fonYou said that customers using the company’s cloud-based services make as many as 35 additional calls each month.

“Again there are variations regarding the different types of contract,” said Mendoza, “but from the numbers we are seeing, it would be reasonable to assume an average ARPU increase of more than two Euros, per customer per month.”

fonYou now provides cloud telephony services in Spain and South Africa. In Spain the company has its own Virtual Mobile Network and also provides a second line service to Telefonica for the Movistar network that can be downloaded as an App from the App stores or activated through traditional channels on any type of handset. In South Africa, fonYou’s platform is used to drive mobile network operator Cell-C’s MyTools service which provides a range of cloud-based services to the operator’s customers.

Ends


Note to editors:

fonYou’s White Paper – “One to the Power of Two” – which highlights how operators can use cloud services to exploit the second-line capability is available for download at www.fonyou.com. The white paper includes research into the second line market opportunity and the financial rewards potentially available.

About fonYou Telecom (www.fonyou.com)
fonYou has developed a proprietary technology platform, the OMT-9000, which enables mobile operators to offer Cloud Telephony Services to their end customers. These cloud-based services include advanced control settings for blocking, filtering or redirecting traffic; the ability to set up individual voicemail greetings for contacts ; and access a complete history of their call records, SMS and voicemails from anywhere and in real-time.

The company’s Xtra-Line service is also available as a free downloadable App on Android and iPhone. It enables users to choose a second mobile number which is associated with their existing operator account on their existing handset. Within the App they can make and receive calls and text messages as well as access the full range of fonYou’s advanced cloud services.

Media Contact:
Kevin Taylor, Robertson Taylor PR
Mob: + 447 850 858 291
Email: kevin.taylor (at) robertsontyalorpr.com

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