Science Fair Project Encyclopedia
AMPU
Average Margin per User (AMPU) provides a criterion for measuring the success of telephone operators . It is an alternative to ARPU, which focus narrowly on revenue per unit. The central idea is that if you're focusing on how much margin you produce per sold unit, not the amount of cash (revenue) you earn from each customer, you can afford low volumes and still have a healty company. If you get high volumes you will have an significant edge until competition forces prices down. Telecom analysts are traditionally highly focused on ARPU, which isn't too strange when you consider that the typical telco has had huge infrastructure costs that needs to be serviced by a considerable ARPU.
10-26-2009 08:16:03
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The contents of this article is licensed from www.wikipedia.org under the GNU Free Documentation License. Click here to see the transparent copy and copyright details