Average Revenue Per Unit

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Average Revenue Per Unit

A measure of the total amount of revenue a product generates, divided by the total number of users or units of that product. Companies use the ARPU to determine how profitable a certain product is, and, if necessary, make improvements, expand, or cancel the product. ARPU is commonly used in the telecommunications industry to determine the revenue generated per cell phone user on various plans and/or types of cell phone.
References in periodicals archive ?
17 SIMs and based on the statistics, the actual ARPU per month of cellular services is equal to approximately Rs.
The other reason in drop of ARPU is an increasing use of smart communication applications via Internet which is slowly eroding the need for traditional SMS and voice calls.
With the launch of 3G services, it is anticipated that the operators would be able to improve their data revenues and thereby, ARPU would rise again in upcoming years.
The continuing stability in ARPU is encouraging, particularly as it is occurring a year before we had anticipated.