Published On: Sun, Feb 5th, 2017

Telenor ARPU Falls in 2016 Due to Excessive Data Usage

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chief marketing officer of telenorAccording to a recent report Telenor ARPU (Average Revenue Per User) for postpaid and prepaid customers decreased last year because of increased data usage.  

By the end of 2016, Telenor ARPU was Rs.205 per user per month while in the year 2015 it was Rs.212 per user per month. This difference indicates that the increased investments in 3G/4G networks will eventually affect the telecom industry. Telecom operators need to stop the price wars against each other in order to alleviate the situation.

In August 2016, Telenor invested $ 395 million for 4G spectrum and has been constantly investing more to increase its 3G and 4G presence during the past two years.    

A Telenor official said that the situation becomes worrisome when an average customer spends the same amount of money on telecom services as he does on a few cups of tea in a month. The telecom revenues have decreased since the past two years even though the customers have been offered various valuable services including network up gradation worth several hundred million dollars.   

It is high time that the telecom companies should deal with the situation. It is rumored that their headquarters are discouraging any kind of new investment plans. The telecom operators need to look at the bigger picture and work towards providing their subscribers sustainable quality services rather than focusing on increasing the number of subscribers.

About the Author

- Zonaira joined IBEX from the first issue as a writer and later joined the editorial team. She completed her Masters’ degree in Mass Communication from Kinnaird College majoring in Film Making and Advertising. Lifestyle stories, social issues, budding entrepreneurs and fresh startups resonate and inspire her writing. She is keen on putting in perspective the latest business developments and happenings and highlighting prominent professionals belonging to all walks of business. She has worked as a content writer, editor and reporter for a number of publications. Always in transit, an avid reader and traveler, her other interests include theater, languages, religions and teaching young children creative writing.