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 carriers, Internet Service Providers, and Hosters etc. It is a measure of the revenue generated by one customer phone, pager, etc., per month. 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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  • average revenue per user — UK US noun [U] (ABBREVIATION ARPU, also average revenue per unit) ACCOUNTING, COMMUNICATIONS ► the average amount of money that a company makes during a particular period of time from an individual customer or product. Average revenue per user is …   Financial and business terms

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  • Average Revenue Per User — Average Revenue Per Unit ou Average Revenue Per User ou ARPU est le chiffre d affaires mensuel moyen réalisé par une entreprise avec un client. C est une donnée financière utilisée par les opérateurs de télécommunication. Elle peut être appliquée …   Wikipédia en Français

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  • Average margin per user — (AMPU) is one of several criteria for measuring the success of telephone companies. It is an alternative to ARPU, which focuses on revenue per unit. The central premise is that by attention to the margin produced per sold unit, not the amount of… …   Wikipedia

  • Average Revenue Per Unit — Average Revenue Per User ARPU est un acronyme signifiant en anglais Average Revenue Per Unit ou Average Revenue Per User, qui désigne le chiffre d affaires mensuel moyen réalisé par client. Il est notamment utilisé par les opérateurs de… …   Wikipédia en Français

  • Average Margin Per User - AMPU — A widely used metric for gauging the success of businesses in the telecommunications industry. Average margin per user (AMPU) measures the margin made by the firm from each customer, typically measured as the revenue minus the costs and divided… …   Investment dictionary

  • Average Revenue Per Unit - ARPU — A measure of the revenue generated per user or unit. Average revenue per unit allows for the analysis of a company s revenue generation and growth at the per unit level, which can help investors to identify which products are high or low revenue… …   Investment dictionary

  • Prescription Drug User Fee Act — The Prescription Drug User Fee Act (PDUFA) was a law passed by the United States Congress in 1992 which allowed the Food and Drug Administration (FDA) to collect fees from drug manufacturers to fund the new drug approval process. The Act provided …   Wikipedia


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