Skip to main content

Enterprise Mobile Phone Users Drive ARPU

ABI Research latest assessment reveals an increasing gap in usage and spending patterns between business users and consumers who use their mobile phones for personal reasons only.

Based on a survey of more than 1,200 wireless subscribers, results demonstrate that business users are a premium segment of the overall wireless market, not only spending much more on their monthly bills but also adopting advanced handsets and data or multimedia services at significantly higher rates than personal-only users.

ABI Research's analysis shows that the average revenue per user (ARPU) among business users is 24 percent higher than among personal users. For mobile data services, the gap is even wider -- business users spend 80 percent more than personal users.

And, business users talk a lot more -- they consume 69 percent more minutes of use (MOU) per month than personal users. Even among consumer-centric services like multimedia and entertainment applications, business usage is 78 percent higher than that of personal users.

However, according to principal analyst Dan Shey, "Operators still need to develop their capabilities to better serve business customers. Such users deliver the highest ARPU for both business applications and entertainment. Combining the two will pay dividends. This includes the need for operators for more high-end phones targeted to business users, and to drive toward greater service integration."

For device vendors, one key to greater success is to target the implementation of Wi-Fi into devices used by customers with the greatest need for access cost reductions, and the greatest ability to connect to Wi-Fi access points, such as international travelers. The results also indicate the relative opportunities of targeted feature improvements in lower-end phones.

The results of the survey are presented as a free white paper entitled "Wireless Consumer and Business User Profiles."

The white paper is based on a web-based survey of 1,223 mobile subscribers in the United States. Respondents answered a series of questions concerning their usage of cellular and wireless services and their interest in new emerging products.

Popular posts from this blog

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year