NEW YORK-Following a downward trend, average revenue per user in major European markets is rebounding and will continue to rise, according to newly released research from the Yankee Group.
The research firm expects ARPU in European markets to hit $33.72 in 2007, up from $31.61 in 2003. The Yankee Group points to increased voice use, growing data revenue, stricter definitions of what constitutes a subscriber and the fact that most European markets have reached saturation levels, as reasons for the rebound. “Growth will be patchy, with some operators continuing to see ARPU decline, but the overall trend will be upward,” the group said.
To ensure growth in ARPU, the Yankee Group recommends carriers continue to focus on driving use-with an emphasis on data and average margin per user, along with avoiding price wars.
