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View Full Version : Orange Says Customized Handsets Boost ARPU

Jason Dunn
02-12-2004, 10:00 PM
<div class='os_post_top_link'><a href='http://www.thefeature.com/article?articleid=100386&threshold=-1' target='_blank'>http://www.thefeature.com/article?articleid=100386&threshold=-1</a><br /><br /></div>"The Wall Street Journal is reporting that Orange's Signature line of phones, handsets that meet a long list of the carrier's specifications, earn the company double the ARPU of standard handsets. Does this spell doom for major handset manufacturers? <br /><br />Orange's signature line features advanced handsets customized for the carrier with a specific menu structure and certain applications. Orange says they earn an average of 100 euros per month from users with these devices, compared to the 50 euros a month from a typical user, which is quite a difference."<br /><br />In the carrier world, it's all about ARPU: average revenue per unit, ie: the amount of money that can be generated per customer. ARPU is driven higher by special services, SMS, GPRS, etc. Given the high level of churn (customers leaving) that most carriers see, anything to glean more income per customer is a top priority for carriers.

02-14-2004, 01:01 PM
well the part i found most interesting from that piece was this quote:

Orange didn't provide specific figures for other handsets, though the WSJ adds that last June the carrier said users of the Nokia 7650, a smartphone that's not part of the signature line, generated 93 euros per month in revenue

so if you provide devices with a good spec and the capability of using various data services - you'll get more people generating revenue no matter if the operator "brands" it or not

they also make a good point of how Orange provide in store 'specialists' to help new users get the most out of their phones - although the quality varies of course, but it's more than a most other operators provide

it definitely doesn't spell doom for any handset manufacturers - operator branding and specification has been used for years in Japan - and the rest of the world is just following suit

where the operator branding and specification goes too far that is the trouble - Vodafone frequently overstep the mark on some of their Live! handsets taking away from the usability and features of the devices

02-16-2004, 10:52 PM
if the carriers really wanted to get smart, they would price the smartphones cheaper than the other phones, since those are apparently returning double the ARPU.