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ARPU stands for Average Revenue Per User. It is the earning of a telecom company of one single user per month from its services.
A strong of per-user revenue graph indicates a robust financial status of a company. Additionally, a higher ARPU represents just how popular a company’s services have been.
ARPU is calculated by diving the total revenue of a company within a specific period by the total number of users on its network. The amount can vary depending on the number of subscribers, age, time, geography, etc.
Telecom operators publish their data in the quarterly reports where we can find how their average revenue per user is faring. It has become a standard metric to assess the financial health of a company.
The companies made it large off their voice, international roaming, mobile data, and other services. But this trending graph has halted globally in recent years. Similarly, the latest Covid-19 effects have hurt the business in its entirety. And the change in the behavior of the consumers is also to blame for declining ARPU figures.
Currently, all three carrier providers Ntc, Ncell, and Smart Cell are witnessing comparatively unflattering ARPU numbers. Below are the reasons ARPU figures have made landfall for telcos.
The Corona effect is settling and that could see a recovery of ARPU growth for operators. However, the OTT apps will continue to mount a serious threat to the service providers in their regular voice service. Companies can also not afford to up the cost of data packages.
How much do you spend on telecom services per month? Would you spend more if you find the services more convincing? Do share in the comments below.
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