A big dip in ARPU 11 Apr, 2008

According to the latest figure from TRAI, average airtime and SMSs sent per subscriber in India have noticeably decreased.

Indian service providers say that the lowered ARPU (Average Revenue per User) is caused by two main factors: extending networks into rural India, and the downward tariff spiral.

ARPU in rural areas is lower, as rural users tend to call and send SMSs less often.

Both pre-paid and post-paid plans are getting cheaper as India’s mobile market matures, and as competition gets fiercer.

So the big question is: how long can the exponential growth of India’s mobile market offset the lower ARPU trend?

Learn more: “Minutes of cellular usage & SMS per user hit new low