Partnering for growth

The Ericsson Media Summit held in Beirut at the end of November brought together telecom professionals and students from around the Middle East region for a discussion of the ICT drivers at play. Ericsson emphasised the need for private and public sectors to become fully aware of the significant gains the digital dividend offers and to take steps towards developing the necessary enabling environment

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Anders Lindblad, Ericsson’s president of Region Middle East, offers insights on the drivers of the telecom sector in the Middle East

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Is ARPU still a reliable metric?

In the telecom industry many AxPU metrics have been proposed and/or used to assess the business performance of a given telecom market and/or operator. However ARPU (average revenue per user) remains the most strategically regarded and widely accepted metric. It is commonly calculated by dividing aggregated revenues by the average number of subscribers who theoretically generated those revenues during a predefined time period – typically a month as adopted by most telecom carriers. More interestingly, focused ARPU figures are calculated for specific services in a bid to identify the largest sources of revenue generation, as they are calculated according to diverse factors such as geographic location, user age, occupation, and income.M.Jamoussi

Jamoussi believes it is time to contest assumptions such as low-ARPU markets are unprofitable, while high-ARPU ones are

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