Comments on: Amazon Kindles Good For Telcos, Bad for ARPU

By: The Pending Obsolescence of Handset Penetration Rates

The Pending Obsolescence of Handset Penetration Rates — Sat, 29 May 2010 14:52:05 +0000

[...] obsolete as the mobile industry expands to a wide variety of gadgets that aren’t phones. Like ARPU — which is still a key metric in the industry — it will provide just a glimpse of the [...]

By: AT&T & Verizon’s Future is in Your Fridge

AT&T & Verizon’s Future is in Your Fridge — Mon, 17 May 2010 19:39:53 +0000

[...] ARPU isn’t the only metric that carriers pay attention to, and selling data by the megabyte isn’t the only option available to carriers. For example, [...]

By: Why eBooks and eMags won’t be the next killer iPhone App « excapite

Why eBooks and eMags won’t be the next killer iPhone App « excapite — Thu, 17 Dec 2009 09:52:19 +0000

[...] We also have Paid Content’s critique of the ‘Hulu For Magazines’ strategy we looked at last week in The iTunes of News? While GigaOm has found out that Amazon Kindles Good For Telcos, Bad for ARPU. [...]

By: Hey Mom, Even You Can Get A Kindle

Hey Mom, Even You Can Get A Kindle — Wed, 07 Oct 2009 13:54:12 +0000

[...] carriers when it comes to providing communications for machine-to-machine networks. (Related Post: Amazon Kindles Good for Telcos, Bad for ARPU.) Subscribe to GigaOM Pro for $79 a year, get this [...]

By: Verizon-Qualcomm’s M2M Venture Christened nPhase

Verizon-Qualcomm’s M2M Venture Christened nPhase — Thu, 20 Aug 2009 14:52:15 +0000

[...] said earlier this year that it hopes to increase wireless subscriptions by 500 percent in the coming years, and nPhase will undoubtedly play a crucial role in trying to meet that goal. [...]

By: McGuire’s Law » Blog Archive » Observations: Devices - June 6, 2009

Sun, 07 Jun 2009 02:11:42 +0000

[...] Amazon Kindles Good For Telcos, Bad for ARPU [...]

By: AT&T Thinks Prepaid Data Plans Could Drive 3G Everywhere

AT&T Thinks Prepaid Data Plans Could Drive 3G Everywhere — Thu, 04 Jun 2009 19:50:21 +0000

[...] Lurie said. “The goal of finding this incremental revenue is to make money. There is a lot of baggage around average revenue per user (ARPU), but these incremental revenues may bring in $1 per subscriber per month at 50 points of [...]

By: Philip Solis

Philip Solis — Wed, 27 May 2009 21:22:27 +0000

This is good for ARPU.

It’s not that the $2 per month is replacing a much higher ARPU – this is additional. So it’s another $2 per month for someone who happens to be a voice and/or data subscriber. For someone who is not a subscriber, it’s $2 per month that would have gone to another service provider. And this is just the beginning – there will be more devices with more business models that provide extra revenue.

What’s more is that not only is the cost of delivering relatively little data (in the Kindle example) very low, but there are no subscriber acquisition costs (which are very high for the competitive voice/basic services) associated with the additional revenue.

You just cannot compare the Kindle’s ARPU with the ARPU of huge buckets of voice minutes and text messages and data plans for smartphones.

By: Kindle users earn Sprint $2/month, HP’s eReader « Kindle 2 Review – Kindle DX Review, Books

Wed, 27 May 2009 16:37:30 +0000

[...] users earn Sprint $2/month, HP’s eReader Posted on May 27, 2009 by switch11 * GigaOm says that the Average Revenue Per Month Sprint makes from Kindle owners is around [...]

By: Kfir Pravda

Kfir Pravda — Wed, 27 May 2009 13:58:52 +0000

It’s amazing to see this thing unfold. In 2001 I was working in Germany, while GPRS was introduced. My customer, DT, was certain that these kind of devices will save them. The pipe never looked darker :)

By: Is Facebook Really Worth $10 Billion? MediaBytes with Shelly Palmer May 27, 2009 | MediaBytes with Shelly Palmer

Wed, 27 May 2009 12:10:21 +0000

[...] The ARPU metric (average revenue per user) may become less meaningful as telcos start to cut big bulk subscription deals. With companies like Amazon building subscriptions into the prices of products like their Kindle e-reader, Telcos will make less on every user, but they’ll make it up in volume. [...]

By: Jeffrey McManus

Jeffrey McManus — Wed, 27 May 2009 00:28:18 +0000

Jargony acronyms like ARPU == bad

By: miten sampat

miten sampat — Tue, 26 May 2009 23:17:47 +0000

while i agree that it will dilute ARPU as a metric, the growth of embedded devices with access to wireless broadband networks is a good thing for Carriers.

considering the fact that an embedded device by itself may not use up as much bandwidth as compared to a full blown phone, netbook, or other mobile broadband device.

the packaging of the wireless experience on the Kindle2 is great, a nice template for more device to emulate how networking vanishes.