5G Clearly Drives ARPU Increase, But Telcos Must Act Quickly to Develop New Revenue Streams

5G Clearly Drives ARPU Increase, But Telcos Must Act Quickly to Develop New Revenue Streams

This IDC Market Perspective discusses the effects of 5G adoption on average revenue per user (ARPU) in Europe. Mobile consumer 5G ARPU today is now higher than for previous generations. However, promoting 5G services only as mobile high-speed connectivity with limited benefits such as discounts on video/music content or devices, as we have seen so far, will not help European telcos generate new relevant revenue streams. Soon, they will need to attract a larger share of 4G connectivity customers to more compelling 5G plans with more benefits and value-added services to encourage these customers to upgrade their subscriptions. "To unlock the full potential of 5G, telcos must continue to invest in extending coverage and deploying services based on 5G SA technology. They must also work on re-engineering the consumer offering, extending partnerships with vertical stakeholders, and leveraging more AI/ML technologies to deliver a more personalized customer experience," said Daniela Rao, senior research and consulting director, European Telecommunications.

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