Validas, the leader in on-demand wireless business intelligence, reports that its studies show that Verizon Wireless Smartphone users are generating average revenue per user (ARPU) of $105.45 while AT&T Wireless iPhone users generate ARPU of $98.20. Despite this disparity, iPhone users are more likely to experience “bill shock.”
Validas finds that at least 6 percent of iPhone users receive bills totaling more than $200 per phone per month, versus less than 5 percent of Verizon Wireless Smartphone users. Further, more than 1 percent of iPhone users receive bills of more than $500 per month compared to less than half of 1 percent of Verizon Wireless Smartphone users.
“When we see iPhones with shocking bills, it’s usually because of international voice and data usage,” says Ed Finegold, chief analytics officer for Validas. “That kicks off a chain reaction that drives up the taxes and carrier surcharges on the bill too,” Finegold says. The majority of Verizon Wireless Smartphone bills that exceeded $200 per month included charges for new equipment -“ likely the purchase of a new Smartphone.
Other typical bill inflators include overage fees for voice and messaging as well as charges for long distance calls made to overseas destinations.
“Verizon Wireless Smartphone bills seem to be more predictable than AT&T Smartphone bills in general,” says Validas CEO Tom Pepe. “We see trends where almost twice the percentage of AT&T BlackBerrys are billed more than $200 per month compared to Verizon Wireless BlackBerrys,” he says.
