Simon-Kucher has released findings from its Global Telecommunications Study 2025 showing that telecom operators are capturing only about 60% of their full customer lifetime value, leaving an estimated 40% unrealized. Based on responses from more than 15,700 consumers across 31 markets, the study points to declining average revenue per user—down 7% year over year—as a symptom of overreliance on acquisition-driven growth strategies. Simon-Kucher’s research argues that continued competition for new subscribers has pushed many operators into increasingly expensive and low-return “red ocean” tactics, while substantial value remains untapped within existing customer bases.
To address this gap, the study introduces Simon-Kucher’s proprietary HELP Framework, which focuses on four drivers of customer lifetime value: Happy, Engaged, Loyal, and Paying customers. According to the analysis, operators that improve satisfaction, resolve service issues more effectively, strengthen loyalty programs, and optimize monetization can increase CLTV by between 11% and 43%. The research highlights that long-tenured customers generate the vast majority of value, with 95% of lifetime value coming from customers retained for three years or more, while engagement touchpoints—often viewed as cost centers—can become growth opportunities when managed effectively. Simon-Kucher concludes that treating customer lifetime value as a core strategic KPI, rather than prioritizing subscriber growth alone, offers telecom operators a clearer path to stabilizing ARPU and building more sustainable, profitable growth.