Consulting Case Interview Practice Questions

Answer: a - ARPU normally means average revenue per user. It’s calculated by dividing total revenue by the number of subscribers. It is commonly used by telephone carriers, cable companies and other "pipes" type companies. Note that ARPU can be monthly or annual, the A stands for Average.

Key Takeaway: "Pipes" companies always worry about becoming dumb pipes. That means they carry data and don't do much else. The key to avoiding being a dumb pipe is to provide value-added services and constantly innovate. And because they're often quite bad at that, that's why they need the services of a talented consultant like you!