AMPU continues to decline in WE

To analyze mobile operator performance, many analysts use the average revenue per user (ARPU), but this ratio is far from reflecting its execution performance. So, the average margin per user (AMPU) is now preferred. Strategy Analytics reports that AMPU is declining for the eighth consecutive quarter to below €15 (-10%) in Western Europe, following an ever increasing decline rate trend. Competitive and regulatory pressures are the main drivers for the decline, and the 40% margin mark should be broken down next year. WE operators are failing stimulating voice usage and data service revenues remain sluggish. Tough times!!