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August 6, 2007
Hug a Wireless Data User Today
Apparently we heavy users of wireless data don't feel loved:Wireless operators are failing to make high average revenue per user (ARPU) users in North America feel special, reports In-Stat (http://www.in-stat.com). More than 60% of these users do not feel that their wireless operator appreciates their business, and 80% believe that operators should do more, the high-tech market research firm says. The result is that the churn rate for those with a high ARPU is 40% higher than the users with below-average ARPU.Profitable, and high current churn: Sounds like a wireless market ripe for picking, if we can ever get some real competition.
... Recent research by In-Stat found the following:
- Compared to all business users, road warriors are three times more likely to have an ARPU over $150, own a smartphone, and use several mobile data services.
- The ARPU for road warriors who are also smartphone users is over $200. This is more than four times the monthly revenue for US mobile phone users.
[via In-Stat]
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It makes a lot of sense when you consider that high ARPU users are least likely to be sensitive to the $200 cancellation fee. If your business need (or your ego) is better satisfied with the next gadget, the $200 is chump change.