Wednesday, February 26, 2020

Will 5G Boost ARPU?

Some mobile service provider executives hope 5G will allow them to increase average revenue per user. One possible way to do so is require a price premium for 5G plans. The other approach is to bundle 5G as a feature of premium plans. Some U.S. service providers will take the former approach, some the latter method. 

In the U.S. market, Verizon and AT&T take the approach of bundling 5G as a feature of its unlimited usage plans. T-Mobile and Sprint have taken the other approach, with no cost premium to use 5G. What will happen after the firms complete their merger is unclear, but there is little reason to believe that approach will change. 



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