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What does "1 bp of churn" in the context of Wireless refer to?

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Final answer:

In the wireless industry, "1 bp of churn" means a 0.01% change in the rate at which customers stop using a company's service. A basis point is a common unit of measure for financial percentages, and customer churn is an important metric for wireless companies.

Step-by-step explanation:

In the context of Wireless, the term "1 bp of churn" typically refers to one basis point of customer churn. Churn rate is a metric used to measure the rate at which customers stop using a company's services or products. One basis point (bp) represents a 0.01% change, so when applied to customer churn, it means a 0.01% increase or decrease in the rate at which customers discontinue their service. In the wireless industry, where subscriber bases are large and monthly revenues are significant, even a small change in churn can have substantial financial implications.

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