How subscriber analytics are laying ARPU to rest


Average revenue per user (ARPU) has long been the benchmark metric in the wireless industry with fortunes gained and lost on even small changes in an operator’s ARPU result. However, ARPU was borne from a wireless age when voice, postpaid and subscriptions were the dominant drivers of success, and the past couple of years have seen the wireless industry go through dramatic changes.One evolving result of these changes has been to make ARPU increasingly irrelevant as a measure.

Mature markets today are seeing over 100 percent penetration, a clear indicator of the trend toward people carrying multiple wireless devices. This trend will progressively reach more mainstream consumers as everyday products are becoming wirelessly enabled, such as e-readers, GPS devices and cameras. In this environment, the concept of ARPU starts to lose constructive meaning as it only describes one facet of what has fast become a multifaceted interaction between the…

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