Sir - Vodafone’s soaring subscriber rates in the run-up to Christmas makes positive reading. A fly in the ointment however is the fall in average revenue per user (ARPU). This isn’t surprising given the fierce competition in the mobile space and the regulatory price cuts in termination charges that took place late last year, reducing its income from operators ending calls on its 2G networks.
However, 2005 brings real opportunities for mobile operators looking to increase ARPU. As consumers continue to embrace data offerings such as multimedia messaging and GPRS, demand for data will increase. In addition, the more widespread adoption of 3G will bring with it a rise in the number of data services that operators can provide.
While we’ll continue to see voice revenues growing, this will be more than offset by fierce price competition in the market. For operators looking to achieve growth and increase ARPU, promoting existing data services and developing new offerings such as location-based services is going to be key.
