Telecommunications Industry

ALSO CALLED: Communications Industry, Telecom Services Industry, Communication Equipment Industry, Communications Industries, Telecommunications Equipment Industry, Fiber Optic Industry, Fibre Optics Industry, Optics Industry, Fibre Optic Industry, Communications Equipment Industry, Telecom Industry, Optical Communications Industry, Telephone Industry, Optical Networking Industry, Optical Fibre Industry, Telecom and Network Industry, Optical Fiber Industry, Fiber Optics Industry, Telecom
DEFINITION: Average revenue per user or average revenue per unit (ARPU) is an expression of the income generated by a typical subscriber or device per unit time in a telecommunications network. The ARPU provides an indication of the effectiveness with which revenue-generating potential is exploited.To calculate the ARPU, a standard time period must be defined. Most telecommunications carriers operate by the month.  … 
Definition continues below.

TELECOMMUNICATIONS INDUSTRY DEFINITION (continued): …  The total revenue generated by all units (paying subscribers or communications devices) during that period is determined. Then that figure is divided by the number of units. Because the number of units can vary from day to day, the average number of units must be calculated or estimated for a given month to obtain the most accurate possible ARPU figure for that month.The ARPU can be broken down according to income-producing categories. For example, monthly or annual subscriber fees generate a steady revenue stream but do not take into account short-term changes in customer usage habits. The income … 
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