FULL FORM OF ARPU

 FULL FORM OF ARPU

The full form of ARPU is Average Revenue Per Unit. It is the measure of the revenue generated by per unit. It is also known as average revenue per users. It helps management of company as well as investors to refine their analysis of a company revenue generation. Capability and growth at the per unit level. It is calculated as total revenue divided by the numbers of unit, users or subscribers.



CALCULATOR OF ARPU

In order to calculate ARPU accurately, there must be define a standard time period. Most telephone and communication companies calculate ARPU on a month to month basis. The total revenue generated during the specified time period should be divided by the number of units or users.

USES OF ARPU

This term is used by companies which offers subscription services to there clients for instance, telephone carriers, internet service providers and hosts. It is a measure of revenue generated by one customer phone, internet service etc per unit time, particularly per year or month.  

  IMPORTANCE OF  ARPU IN BUSINESS ATRATEGY

ARPU is important information to company executives and investors who want to understand and asses a company's revenue  capability and growth at the per-unit level. The number is declared by many companies for that reason. ARPU is particularly relevant to telecom and media companies because their businesses are based on subscribers or active users.

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