Rethinking ARPU in Telecommunications

The Average Revenue Per User (ARPU) is a measurement that has been used by telecom service providers for many years. Typically, ARPU (defined as the total revenue divided by the total number of subscribers) has been increased through upselling of value added features and capabilities, such as fixed mobile convergence and Unified Communications functionality. But because IP telephony provides connectivity at an even greater cost reduction, ARPU must be reexamined in this new context of cloud communications.

Today, a new opportunity for increased ARPU is emerging. The addition of bespoke applications in IP telephony can skyrocket productivity for businesses while increasing ARPU for service providers. This is made possible by Unified Communications and the ability to deliver rich PBX services from the service providers’ network to the business customers’ IP devices and GSM phones.

Development of Apps for increased ARPU

The demand for bespoke solutions that fit with specific business requirements has been increasing ever since software programs became the norm. However, the main reason for the recent rapid growth is that we’re moving into a software-driven world. Only when businesses customize software to work for them will they have competitive advantage in an already competitive market. With hundreds of thousands of apps available on the market, it’s imperative that companies understand exactly which kinds of apps could benefit them.

For resellers, system integrators and service providers alike, the appetite for apps is an area for potential profit and new upselling opportunities. Bespoke apps for businesses bring a valuable increase in ARPU while offering a powerful competitive differentiator for businesses. The end goal is to offer developers the tools to bring useful, customized apps to their business customers.

Continuous innovation is now the life blood of successful organizations. New developers tools enable service providers to increase ARPU through bespoke value added apps specifically targeted to their markets.