Proof Is in Performance, Not Publicity.(wireless communications services advertising expenditure)

Wireless Week, January, 2006 by Dehghan, Shirin

By Shirin Dehghan

Slogans aside, what operators really need to do is optimize their networks, and that can be done for peanuts while deriving enormous economic benefits.

Carriers spend big dollars to acquire customers. The network's performance is what will make them stay, not glitzy advertising.

In the last quarter of 2004, the average acquisition cost per mobile subscriber worldwide was $137. In the same quarter, the average revenue per user - the hallowed ARPU - across the United States and Canada was $52.* That's average revenue per subscriber, not margin. It therefore takes a fair amount of time for operators to recoup the acquisition costs for each subscriber. That assumes, however, that the subscriber stays the course and...

Read the rest of this article with a Free Trial at HighBeam Research.

Premium Content Partnership | HighBeam Research provides an in-depth online archive library of reference works.