I think it also matters what the purpose is for stating ARPU. For example, if ARPU was considering ALL revenue, it would be meaningless if that revenue was not trasferable to a third party, and discussing ARPU based on selling to a third party.
For example, if you are a local computer repair person, that revenue is associated to your customer. But a national company buying you, likely would never consider that revenue as ARPU, since they'd never be able to take over those services, since they require local feet on ground. However, Email account, web sites, etc could very well be transferrable, and relevent revenues to count in the number. I think for ARPU to be meanignful, it also has to reflect the typical costs to provide that service, if a typical cost is associated per customer. For example, if a business plan, calculated teh average cost of an install to be $500, then and the average broadband circuit was $200/mon. And you had one customer with 3 sites. If you said the average ARPU was $600, you'd then also need to state that average cost was $1500. I think it also matters whether you feel its likely that if you loose a customer, that you'd loose all sites of the custoemrs at the same time. That migfht determine whether you'd want to bundle them togeather as one or not. If buying decissions are independent at each site, it might be more appropriate to consider them seperate customers. All though its technically incorrect, we consider each link to a customer a seperate customer. Tom DeReggi RapidDSL & Wireless, Inc IntAirNet- Fixed Wireless Broadband ----- Original Message ----- From: "Shiraz Moosajee" <shi...@jabbroadband.com> To: "WISPA General List" <wireless@wispa.org> Sent: Monday, January 05, 2009 7:20 PM Subject: Re: [WISPA] what should ARPU mean? > Matt, > You would generally count just the one "unique" customer. > > That said, every ARPU calculation I have seen seems to be slightly > different which in itself reflects the different definitions of > customers and revenue. One example is treatment of MDU (Multiple > Dwelling Unit) Apartments which is sometimes dealt with as a single > customer (the apartment owner / HOA) and sometimes at the more granular > tenant level. > > It's probably more important to pick a methodology that's justifiable - > a good test would be if you send your customer 1 or many invoices / get > 1 payment? - and apply it consistently. > > Shiraz > > -----Original Message----- > From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On > Behalf Of Matt Liotta > Sent: Monday, January 05, 2009 12:15 PM > To: WISPA General List > Subject: Re: [WISPA] what should ARPU mean? > > What if one customer signs two different contracts? at two different > locations? > > Is there ever a point where a single customer should for the purposes > of ARPU be considered at a less granular level? > > -Matt > > On Jan 5, 2009, at 2:09 PM, Travis Johnson wrote: > >> My assumption has always been adding up all your gross revenues from >> the >> customers and dividing by the number of customers. I had never heard >> of >> anything different. What are you hearing? >> >> Travis >> Microserv >> >> Matt Liotta wrote: >>> We (the WISP industry) like to talk about ARPU a lot, but different >>> organizations define ARPU differently. So, my question is what do you >>> think the definition of ARPU should be? >>> >>> -Matt >>> >>> >>> > ------------------------------------------------------------------------ > -------- >>> WISPA Wants You! Join today! >>> http://signup.wispa.org/ >>> > ------------------------------------------------------------------------ > -------- >>> >>> WISPA Wireless List: wireless@wispa.org >>> >>> Subscribe/Unsubscribe: >>> http://lists.wispa.org/mailman/listinfo/wireless >>> >>> Archives: http://lists.wispa.org/pipermail/wireless/ >>> >>> >>> >> >> >> > ------------------------------------------------------------------------ > -------- >> WISPA Wants You! 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