By: David Cross

David Cross — Wed, 03 Jun 2009 11:13:05 +0000

Nice post. With the current trend for network operaotrs to enter into more strategic relationships with network vendors (e.g. 3 and T-Mobile network sharing deal in the UK), and those network operators also now starting to offer flat-fee use of VoIP applications to their ‘premium pay-monthly’ customers, it would seem your comments about the ‘demise of ARPU as useful measure of operator value creation’ seem to be increasingly relevant.

By: Martin Lawrence

Martin Lawrence — Wed, 02 Jan 2008 13:41:33 +0000

Hi Naveed,
great article, provided a lot of insight.
What really clicked was the phrase “once the friction in buying from a phone is removed”
After all, it has taken ages for B2C e-commerce to take off – largely because people would not entrust their credit card numbers to websites. People were hesitant to provide this information to a party they didn’t know, so they stuck with established service providers (telecoms, utilities), slowly extending to trusted brands (Amazon, iTunes).
With mobile internet access, again, it will take time before customers are confident to do transactions. Having ONE trusted billing service will be most useful.
So indeed, the billing relationship must be the MNO’s most valuable asset. I definitely would prefer all my (micro-)transactions consolidated in one monthly bill, for easy review. And I would like a central clearinghouse to make sure a provider I order from is indeed trustworthy.
From this perspective, I understand Sarin’s statement, even if it fails to reflect the rapidly changing market. With Apple and Nokia establishing billing relationships AND moving into devices, I fully agree with you – this is a very serious threat to the MNO’s remaining assets.

Comments on: Is ARPU outdated? The wider impact of Billing in an open mobile environment

By: David Cross

By: Martin Lawrence