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The top line metric that the financial markets care about for the major postpaid carriers is ARPU (average revenue per user). As soon as this number goes down,
by otterley 5y ago
The top line metric that the financial markets care about for the major postpaid carriers is ARPU (average revenue per user). As soon as this number goes down, so does the company’s market cap. The C suite really cares about making sure this number continues to go up.
- rahimnathwani 5y agoThe easiest way to improve ARPU is to raise all existing customers' prices to current ARPU, and hope they either accept it or churn. Either way ARPU goes up, whilst revenue and profits go down.
- otterley 5y agoI'm pretty sure the carriers want both ARPU and profits to increase.
- rahimnathwani 5y agoIf a carrier CEO has two options, with the following estimate outcomes: A) Profit +10%. ARPU -1%. B) Profit +5%. ARPU +5%. Do you think they might choose A?