Sunday, September 29, 2019

Too Early to Assess 5G Impact on ARPU

It is way too early to determine what impact 5G might have on service provider revenues, as account volume still is insignificant on a global scale. And while there are signs 5G might be boosting average revenue per account in South Korea, pricing policies still are developing in other markets. 

In markets were pricing is usage based, there might be some revenue lift from greater usage. In other markets, where there is no 5G price increment, ARPU might be affected in any number of ways. ARPU might drop, if competitive pressures are high.

In other cases, ARPU might remain flat, if simple substitution happens (5G replaces 4G). In yet other cases, ARPU could grow if usage-based pricing means 5G data consumption is meaningfully higher. 


The meaningful revenue upside might come in consumer services at all, but in new higher-value services for businesses incorporating internet of things, edge computing, virtual private networks, artificial or augmented reality.

No comments:

Post a Comment

Is Sora an "iPhone Moment?"

Sora is OpenAI’s new cutting-edge and possibly disruptive AI model that can generate realistic videos based on textual descriptions.  Perhap...