ARPU Will Be A Key Factor To Watch
Around February, Verizon and AT&T reintroduced their unlimited data plans for mainstream customers, marking a reversal of sorts from their push to get subscribers to pay for data based on actual usage. The move could effectively put a ceiling on ARPU for high-spending customers, who were on more expensive tiered plans previously, while limiting high-margin overage fees that are charged when customers exceed their monthly quotas. While wireless ARPUs have generally been trending lower, they appear to have seen their sharpest declines after Verizon and AT&T – the two carriers with the most high value customers – re-introduced unlimited plans. For instance, the consumer price index for wireless services in the U.S. declined by close to 9% over March and April alone. As this marks the first full quarter since Verizon’s unlimited plans have been available, we will closely be watching the impact on the carrier’s postpaid ARPU.
This is what i was discussing regarding the cons of unlimited plans and why the White Label OTT service Syntonic is providing, will prove promising moving forward.
You'll see that our two partners in the US reintroduced the Unlimited data plans for main stream customers, however, it limits the ARPU for those carriers.
You can see above that quarter on quarter since 2015, the Average Revenue Per Account for postpaid Verizon users has dropped. This reflects a drop of 11.47% decrease since the 3rd Quarter of 2015.
I have made this comparison chart to highlight the drop in each carrier since Q2 2016 and Q1 2017 (Q2 2017 results arent released yet).
Besides T-Mobile, all carriers in the US are experiencing ARPU losses which is more prevalent looking at a great scale of results from previous years, however, i thought it apt to just highlight the last 12 months.
Syntonic is here to increase ARPU, consumer engagements / satisfaction, advertising reach and connectivity.
SYT Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
