and ARPU Churn Rates
Average revenue per user (ARPU), the company provides a
granular View (at a user or Unit basis) and allows it to track
revenue sources and growth. Churn
rate refers to the proportion of contractual customers or subscribers (typically called
postpaid) who leave a supplier during a given time period
. Both success indicators are commonly used in the
wireless telecommunications industry.AT & T reported fourth Quarter
Wireless (4 Q) 2009 postpaid ARPU of $61.
,
4 a 2.6 percent increase over 2008 Q. Postpaid data
ARPU was $19.
16, up 17.5 percent during the same period [10, much of which can be attributed to
iPhone subscribers. AT & T reported
iPhone ARPU subscribers was approximately 60% higher than the average
subscriber, with significantly lower churn
rates than the overall subscriber base AT & T [11 . Postpaid
churn dropped to 1.19 percent, with AT & T
recording six consecutive quarterly periods of reduced churn [10, a trend
which is most likely attributable to the iPhone.From an
ARPU and churn perspective, iPhone
can be considered successful.
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