- Average revenue per user
ARPU is an
acronym for average revenue per user or average revenue per unit.This term is used by companies that offer subscription services to clients for example,
telephone carrier s,Internet Service Provider s, andHoster s etc. It is a measure of therevenue generated by one customerphone ,pager , etc., permonth . In mobile telephony, ARPU includes not only the revenues billed to the customer each month for usage, but also the revenue generated from incoming calls, payable within the regulatory interconnection regime.This provides the company a granular view at a per user or unit basis and allows it to track revenue sources and growth
There is a trendFact|date=September 2008 by telecommunications and Internet companies and their suppliers to sell extra services to users and a lot of the promotion that is used by these companies talks of increased ARPU for these operators. It typically manifestsFact|date=September 2008 in the form of
value-added services such as entertainment being sold to customers especially in markets where the primary service offered to the customer, such as the telephony or Internet service, is sold at a commodity rate.A related (but less used) acronym is
AMPU , for average margin per user.ARPU is widely used by Internet Protocol Television (IPTV) service providers
External links
* [http://www.wisegeek.com/what-is-arpu.htm Wisegeek on ARPU]
* [http://www.investopedia.com/terms/a/arpu.asp ARPU definition at Investopedia]
* [http://www.pcmag.com/encyclopedia_term/0,2542,t=ARPU&i=37990,00.asp PC Magazine Definition]
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