Abstract The present study examines the relationships between service quality, perceived value, customer satisfaction, and customer retention empirically in the telecommunication sector in Egypt, as based on a survey of the consumers of Vodafone Company in Egypt. The research findings provide evidences to suggest that overall service quality have the positive effect on perceived value, customer satisfaction and customer retention moreover, perceived value mediates the relationship between overall service quality and customer retention .Moreover  customer satisfaction has not been  mediates the relationship between overall service quality and customer retention.   This is in addition to address that perceived value will mediates the relationship between the overall service quality and customer retention. The overall service quality will provide greater importance, which will then lead building sustainable competitive advantage.  Service quality conditions influences a firms competitive advantage by retaining customer. Finally, based on the research findings it could be argued that organizations are required to consider the relationship between overall service quality, perceived value, customer satisfaction  and customer retention  in the formulation, Developing and maintaining  of their retention strategies.