TMT (Tech, Media & Telecom)
How do you calculate ARPU for a wireless carrier? Quarterly service revenue is $3.0B on an average subscriber base of 25M.
Model answer
ARPU (average revenue per user) = service revenue / average subscribers / months in the period. Here: $3.0B / 25M subs = $120 per subscriber for the quarter, / 3 months = $40 per month. Conventions…
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