Increasing ARPU - Raising revenue in a saturated market
Average revenue per user or other revenue-generating unit is a key metric for any telecom operator. Maintaining or ideally increasing ARPU directly translates into higher levels of profitability and an improved capacity to invest – provided that parameters like SAC, SRC and churn are kept under control.
When comparing different services such as fixed broadband and mobile as well as the evolution of ARPU in various regions of the world, one can observe significant differences. The reasons for this are manifold. They are partly rooted in consumer behaviour but also in such factors as market structure and the level of competition
Mobile markets have become increasingly saturated with penetration rates standing well above 100% of population, and the adoption of fixed broadband has reached levels where future growth is limited. Increasing ARPU has thus become a priority for operators, even more so as price competition is eating into their margins.
When comparing different services such as fixed broadband and mobile as well as the evolution of ARPU in various regions of the world, one can observe significant differences. The reasons for this are manifold. They are partly rooted in consumer behaviour but also in such factors as market structure and the level of competition
Mobile markets have become increasingly saturated with penetration rates standing well above 100% of population, and the adoption of fixed broadband has reached levels where future growth is limited. Increasing ARPU has thus become a priority for operators, even more so as price competition is eating into their margins.
1. EXECUTIVE SUMMARY
2. METHODOLOGY & DEFINITIONS
2.1. General methodology of IDATE's reports
2.2. Market assessment and forecasts
2.3. Definition
3. ARPU EVOLUTION
3.1. A (challenged) key metric
3.2. Contrasting trends
4. LEVERS FOR INCREASING REVENUE
4.1. Tiered pricing
4.1.1. Differentiation by volume and speed
4.1.2. Differentiation by quality of service
4.2. Bundling and up-selling
4.2.1. Bundling
4.2.2. Premium options
4.3. Two-sided markets
4.3.1. Connected cars
4.3.2. Sponsored data
4.3.3. Telco CDN
4.3.4. Paid peering
2. METHODOLOGY & DEFINITIONS
2.1. General methodology of IDATE's reports
2.2. Market assessment and forecasts
2.3. Definition
3. ARPU EVOLUTION
3.1. A (challenged) key metric
3.2. Contrasting trends
4. LEVERS FOR INCREASING REVENUE
4.1. Tiered pricing
4.1.1. Differentiation by volume and speed
4.1.2. Differentiation by quality of service
4.2. Bundling and up-selling
4.2.1. Bundling
4.2.2. Premium options
4.3. Two-sided markets
4.3.1. Connected cars
4.3.2. Sponsored data
4.3.3. Telco CDN
4.3.4. Paid peering
LIST OF TABLES
Table 1: Pricing for the Swisscom Natel Infinity range
Table 2: Telcos’ connected car involvement
Table 3: Telco CDN implementation, by operator
Table 1: Pricing for the Swisscom Natel Infinity range
Table 2: Telcos’ connected car involvement
Table 3: Telco CDN implementation, by operator
LIST OF FIGURES
Figure 1: Mobile retail ARPU evolution in EU5 and USA
Figure 2: Mobile retail ARPU evolution in EU5 and USA
Figure 3: Fixed broadband retail ARPU evolution in EU5 and USA
Figure 4 : Mobile penetration rates
Figure 5 : ARPU vs. revenue per capita in USA vs. EU5
Figure 6: Market share of major MNOs in the USA and in Europe
Figure 7: Competitive choice of broadband provider in the USA
Figure 8: Decoupling of traffic and revenues with flat rate pricing
Figure 9: Deutsche Telekom wireline broadband tariffs
Figure 10: AT&T mobile tariffs
Figure 11: ATT wireless ARPU
Figure 12: Comcast traffic cap and top-up
Figure 13: BT broadband tiered pricing
Figure 14: Deutsche Telekom fixed wireless tariffs
Figure 15: Swisscom Natel infinity speed tiers
Figure 16: API to develop a ‘turbo’ button for a smartphone
Figure 17: Superonline ‘Turbo button’
Figure 18: Vodafone Spain prioritisation
Figure 19: Free Priority Pass
Figure 20: Virgin Media: Seven steps to select the most adequate package
Figure 21: ‘Package-building tools’ from AT&T and BT
Figure 22: Open, the quadruple play solution by Orange
Figure 23: Verizon and AT&T shared data plans
Figure 24: Verizon wireless ARPU
Figure 25: Sprint’s changing stance on shared offers
Figure 26: Time Warner Cable Signature Home
Figure 27: Movistar Gurú
Figure 28: Virgin Media Live Expert Help
Figure 29: Virgin Media F-Secure Safe solution
Figure 30: AT&T sponsored data
Figure 31: Implementation of a CDN within the BT network
Figure 1: Mobile retail ARPU evolution in EU5 and USA
Figure 2: Mobile retail ARPU evolution in EU5 and USA
Figure 3: Fixed broadband retail ARPU evolution in EU5 and USA
Figure 4 : Mobile penetration rates
Figure 5 : ARPU vs. revenue per capita in USA vs. EU5
Figure 6: Market share of major MNOs in the USA and in Europe
Figure 7: Competitive choice of broadband provider in the USA
Figure 8: Decoupling of traffic and revenues with flat rate pricing
Figure 9: Deutsche Telekom wireline broadband tariffs
Figure 10: AT&T mobile tariffs
Figure 11: ATT wireless ARPU
Figure 12: Comcast traffic cap and top-up
Figure 13: BT broadband tiered pricing
Figure 14: Deutsche Telekom fixed wireless tariffs
Figure 15: Swisscom Natel infinity speed tiers
Figure 16: API to develop a ‘turbo’ button for a smartphone
Figure 17: Superonline ‘Turbo button’
Figure 18: Vodafone Spain prioritisation
Figure 19: Free Priority Pass
Figure 20: Virgin Media: Seven steps to select the most adequate package
Figure 21: ‘Package-building tools’ from AT&T and BT
Figure 22: Open, the quadruple play solution by Orange
Figure 23: Verizon and AT&T shared data plans
Figure 24: Verizon wireless ARPU
Figure 25: Sprint’s changing stance on shared offers
Figure 26: Time Warner Cable Signature Home
Figure 27: Movistar Gurú
Figure 28: Virgin Media Live Expert Help
Figure 29: Virgin Media F-Secure Safe solution
Figure 30: AT&T sponsored data
Figure 31: Implementation of a CDN within the BT network
