Forget the Revenues, Focus on Margin

Aho, Esa
March 2005
Credit Control;2005, Vol. 26 Issue 3, p60
Trade Publication
The article focuses on the concept of average revenue per user (ARPU) in telecommunication. Historically, high ARPUs have been linked with high-end post-paid subscribers. But as we look more into margins, also low-end prepaid customers can be profitable. In the prepaid market segment rates are typically higher, lifetime costs including marketing and customer care are usually lower, and prepaid billing minimizes bad dept. To reach a positive average margin per user, the service provider/operator must have a cost-effective billing system and agile service operations.


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