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Will The Open Web Destroy The ARPU Model For Carriers?
Ajit Jaokar at Open Gardens posted one of the best critiques of the ARPU model I have ever read. Let's take a look at the arguments:
Ajit's best point centers on the customer relationship. Carriers have long treasured their exclusive billing relationships with their subscribers. But in an open mobile Web, these exclusive relationships will be opened. AT&T already has opened its billing relationships for iPhone users to Apple. Apple has a direct relationship with all iPhone subscribers for selling content, thanks to iTunes. IPhone users do not have to rely on AT&T for any of their mobile content on their smartphones. As carriers open their networks, their subscribers will develop more direct relationships with their mobile content providers on the consumer side and with their vendors and IT departments on the business side. In this world, the whole ARPU concept makes no sense. While I think this is great news for the industry and for consumers, I wonder if subscribers are ready for the changes open access will bring. Many subscribers will choose to remain locked into contracts in exchange for subsidies, but many more will not. The carriers already know this. And, as I have said before, I don't think that they're going to be as open as we want them to be. They will drag their feet more than a few times on their way to open access. Can the carriers figure out a new business model? What do you think? « Spammers Up To New Tricks | Main | CES: Spotted, First Possible Android Smartphone » |
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