A key performance indicator of mobile operators is the Average Revenue Per User (ARPU). ARPU refers to the revenue generated by a single user per month and includes the income both due to the services availed by the user and due to the incoming calls to the user. Although ARPU is a metric used to measure profitability, in some cases, an operator with a lower ARPU can be more profitable than another with a higher ARPU because of a larger subscriber base.
According to a report from the Telecom Regulatory Authority of India (TRAI), the ARPU for GSM operators in India was around $6.12 at the end of 2007, while it was $4.12 for CDMA operators. An ARPU below $5 is generally considered unviable. In comparison, operators in the Japan, US, and Western Europe have an ARPU of approximately $55, $50, and $46 respectively. These higher numbers are mainly fueled by higher usage of data services. China Mobile, the largest operator in China, enjoys an ARPU of $12.5.
Interestingly, some operators claim that up to 35% of their revenues are generated from data services. According to a market research report, China has a data ARPU of $2.3 but the same for India is $0.70. Clearly, these numbers will increase after the introduction of 3G and WiMax services. For example, 3 UK has declared a data ARPU of $29 and other major operators with 3G services have a data ARPU of around $20.
According to a report from the Telecom Regulatory Authority of India (TRAI), the ARPU for GSM operators in India was around $6.12 at the end of 2007, while it was $4.12 for CDMA operators. An ARPU below $5 is generally considered unviable. In comparison, operators in the Japan, US, and Western Europe have an ARPU of approximately $55, $50, and $46 respectively. These higher numbers are mainly fueled by higher usage of data services. China Mobile, the largest operator in China, enjoys an ARPU of $12.5.
Interestingly, some operators claim that up to 35% of their revenues are generated from data services. According to a market research report, China has a data ARPU of $2.3 but the same for India is $0.70. Clearly, these numbers will increase after the introduction of 3G and WiMax services. For example, 3 UK has declared a data ARPU of $29 and other major operators with 3G services have a data ARPU of around $20.
