Telecom ARPU and ROI -- Follow the money

The path to next-gen architecture collided with plummeting bandwidth prices that drove down telecom ARPU and lengthened carriers' ROI. How to grow telecom ARPU is an industry-wide concern that has wireless operators weighing their options.

The path to next-gen architecture clashed with falling bandwidth prices that reduced telecom ARPU and lengthened ROI. Raising ARPU is a huge industry issue.Hold the phone! The promise of next-generation telecom network architecture was to converge disparate networks and deliver services more quickly and cheaply. Sadly, that collided with plummeting bandwidth prices that drove down average revenue per user (ARPU) and lengthened return on investment (ROI).

How to grow telecom ARPU is an industry-wide concern. Wireless operators are hoping for 4G LTE revenue growth. Others make good arguments for service-oriented architecture (SOA) and service delivery platform solutions to increase revenue.

Then comes the scariest thought of all in this transaction-oriented business: What if ARPU isn't the right measure anymore?

NEXT: What's next for telecom 2010?

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This was last published in December 2009

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