Emphasis shifting away from ARPU

Printer-friendly versionPDF version

Over the last decade and in particular the last five years, ARPU has been the dominant metric in the mobile and broadband markets amongst other telecommunications sectors. The emphasis is now clearly shifting away from ARPU and towards other metrics such as subscriber uptake. An illustration of this trend is provided by Verizon’s recent strategy to increase the number of subscribers to its FiOS network, in areas to which it has already deployed the service. Whilst previously FiOS subscribers had to sign an expensive, minimum two-year contract with early-termination fees, Verizon is now offering first-time users a trial period as well as month-to-month contract free pricing options. Rather than try to increase its ARPU (which has tended to be below that of its rivals), Verizon is seeking to grow its revenues, which already are amongst the highest in the industry. Indeed, mobile and broadband providers are exploring a wider variety of pricing models, to capture the growing demand for an expanding range of mobile devices and content offerings.

For more information on developments in the US mobile and broadband markets see

USA – Mobile Market – Analysis, Statistics & Forecasts

and

USA – Broadband Market – Fibre to the Home (FttH) – Overview, Statistics & Forecasts

.

News Source : Emphasis shifting away from ARPU