CLEP Management

Category - CLEP Management

AT&T hires you for a project asking you to help them increase their ARPU. What do they mean by ARPU?
  1. Average revenue per user
  2. Annual return per unit
  3. Allowable returns per unit
  4. Annual returns per user
  5. Annual revenue per user
Explanation
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.
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