Average margin per user

From Wikipedia, the free encyclopedia

This article or section does not adequately cite its references or sources.
Please help improve this article by adding citations to reliable sources. (help, get involved!)
Any material not supported by sources may be challenged and removed at any time. This article has been tagged since February 2007.

Average Margin per User (AMPU) provides a criteria for measuring the success of telephone operators. It is an alternative to ARPU, which focus narrowly on revenue per unit. The central idea is that if you're focusing on how much margin you produce per sold unit, not the amount of cash (revenue) you earn from each customer, you can afford low volumes and still have a healty company. If you get high volumes you will have a significant edge until competition forces prices down. Telecom analysts are traditionally highly focused on ARPU, due to the fact that the typical telco has had huge infrastructure costs that needs to be serviced by a considerable ARPU.

Retrieved from "http://en.wikipedia.org../../../a/v/e/Average_margin_per_user.html"