Feeds

Vodafone & Orange numbers point to mobile ARPU stability

Very important acronym

  • alert
  • submit to reddit

Internet Security Threat Report 2014

ComputerWire: IT Industry Intelligence

The most important acronym in the mobile industry at the moment is ARPU. All the operators - at least in developed mobile markets - are struggling to push up average revenue per user (ARPU), even at the expense of growth in terms of subscriber numbers.

On Tuesday, Berkshire, UK-based Vodafone Group, the world's largest mobile carrier, and Paris-based Orange SA reported their subscriber numbers and revenue trends, and both reported improving trends in ARPU.

Vodafone claimed to have 99.9 million "proportional" customers and said it added 4.2 million in the fourth quarter of 2002. The blended ARPU remains stable in major markets, said Vodafone, but only when adjusted for seasonal effects. The company added 3.1 million new customers from existing operations, and 1 million from its acquisition of a larger share in Japanese operator J-Phone. Vodafone is also trimming its global prepaid customers, bringing them down to exactly 50% overall, obviously in a move to increase ARPU.

Orange, on the other hand, was reporting revenues alongside customer data. The company reported 2001 revenue up 25% at 15.1bn euros ($13.1bn). For the year it added 8.8 million customers, to take the total to 39.3 million, a 29% increase. In its two major operating territories, France and the UK, it added 3.5 million and 2.7 million respectively.

Current monthly ARPU is £20.50 on Orange and £22.83 on Vodafone.

In the UK, it now claims the second successive quarter of rising ARPU, while in the year ARPU was down across all operations, by around 8% in France, and down around 12.1% in the UK. However, with both aggressively attempting to stall downward ARPU trends, 2002 could really be the year of the rapidly rising ARPU.

In an era when customer growth is king, the operators could be expected to count any registered account, used or unused as an account. When judgment of their business rests on wringing more money out of their subscribers, they need to get rid of the infrequent users or effectively inactive accounts.

So, unsurprisingly, they have both changed the method for measuring active customers, which in itself knocks out customers that generate little revenue, suggesting that both are trying to massage their ARPU figures for the financial community. Orange, for example, said that it could not include 656,000 customers in its numbers, as they didn't meet its conditions for active users.

© Computerwire.com. All rights reserved.

Beginner's guide to SSL certificates

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Oracle hires former SAP exec for cloudy push
'We know Larry said cloud was gibberish, and insane, and idiotic, but...'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.