wing Tele-Density Numbers The tele-density index for you area is the first number you should determine. Tele-density numbers give you the percentage of the population that has cell phones. For example, the tele-density for wireless in France is 28 percent, while the rate for Indonesia is 1 percent. Right now, the highest penetration rate for wireless in the world is in South Korea with a tele-density of over 40 percent. Comparing the tele-density numbers for your market to other markets like yours can tells you how much potential unmet market demand still exists. Comparing Wireless Tele-Density to Wireline Tele-Density Another useful step in this process is to attain the wireline tele- density numbers for the same markets where you have wireless numbers. Since we know that the general market trend is for wireless to replace wireline, then one might reasonably expect that the current wireline tele-density numbers are reasonable estimates for the eventual rate for wireless. eXcellence in Telecommunications The Telco Churn Handbook Defining the Churn Pressure Index Many companies use the churn pressure index to help them identify how much pressure there is on competitors to steal customers from each other. To calculate the churn pressure index you need three numbers: the number of subscribers that all wireless companies in your market currently have (x) and the estimated number of potential customers yet to be acquired (y). Whey you add X and y together you get (z), the total number of people in your market that could possibly be wireless subscribers. X (current subscribers) + Y (potential subscribers) = Z (total market for wireless) To calculate the churn pressure index, you simply divide the total number of potential subscribers (Z) by the number of current subscribers (X). Churn Pressure Index = Z (# of potential subscribers) / X (# of current subscribers) For example, say that you have a market with 500,000 people between the ages of 18 and 90, with income high enough for them to be considered potential wireless