a new one every once in a while. In fact, handset manufacturers work very hard at making their new handsets fashionable and powerful. Making the replacement of consumer handsets economically feasible is a problem for most providers. When they conceive of handset promotions and develop their subsidy, rate, and contract duration parameters, they generally assume that the customer will take the new handset, be happy, and remain loyal. Unfortunately, consumers that respond to this kind of promotion are extremely vulnerable to a similar offering by a competitor when the handset gets a little older. The best way to handle this is to view handset subsidies not as a one-time event, but as a cycle that has to be maintained to keep your customers. Technology Churn Lessons Although there are many other kinds of churn to consider, those customers who participate in technology churn are an extremely important group for the provider to pay attention too. Technology churners are customers who give you advance warning about the direction the market is taking. If you are managing handset, feature/function, and network churners well, then your company is maintaining a healthy position on the technology deployment front. This means that your company is successfully managing new technology and working it into business model. eXcellence in Telecommunications The Telco Churn Handbook If, on the other hand, you find that you are losing many customers to technology churn, then there is a very good chance that you have some serious long-term deficiencies that will have to be addressed. MATURITY PHASE CHURNERS The early adapters who practice technology churn are acquired during the early days of your firm's existence. The groups that churn for price, convenience, social/psychological, and quality reasons churn much later in your life cycle. They come on board during the expansion and maturity phase. Expansion Phase Churn - Rare During the expansion phase, everyone in your market will be clamoring to sign up as many people as possible as q