ARPU News

Average Revenue Per User (ARPU) refers to the total revenue of a given communications company divided by the number of subscribed users. This figure is used by wireless carriers to determine the revenue derived from a single subscriber’s mobile device. Sources of ARPU in the wireless industry can include voice calls, text messages and data sessions. However, ARPU can be difficult to calculate in some scenarios, particularly for machine-to-machine applications and embedded wireless devices like netbooks. Following on the success of smartphones and mobile Internet access, ARPU from mobile data has been offsetting declines in revenues from voice calls. In the fourth quarter of 2010, wireless carrier ARPU ranged widely: Verizon Wireless recorded $50.61, AT&T Mobility recorded $48.98, Sprint Nextel recorded $47.87, T-Mobile USA recorded $46.59, MetroPCS recorded $39.79, U.S. Cellular recorded $54.37 and Leap Wireless recorded $38.14.

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