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Sprint Nextel regains lead in data ARPU
Posted: 05-Apr-2007 [Source: IDC]

[IDC reports Sprint Nextel lead in user data spending during the fourth quarter of 2006 averaging 13.5% of ARPU.]

According to the latest IDC research, there were 236 million U.S. wireless subscribers by the end of 2006. Wireless data revenue totaled $4.8 billion for the fourth quarter of 2006 (4Q06), which equates to roughly 13.5% of average revenue per user (ARPU) or $6.74 per subscriber/customer per month. Of the total data revenue, 48.8% came from messaging in comparison to 13.0% from content and simple application downloads and 38.2% from other business- and consumer-oriented services and content. Among the U.S. national carriers, IDC research indicates that Sprint Nextel edged out Verizon in terms of data spending-per-customer basis.

"Our research shows that in terms of blended data ARPU, Sprint Nextel, at $8.32, regained its lead over Verizon, now at $7.91, although Verizon remains the leader in terms of total wireless data revenue and data percentage of ARPU among the U.S. national carriers," said Julien Blin, research analyst in IDC's Wireless and Mobile Communications program. "It is also worth noting that Verizon became the new market leader in terms of total direct retail subscribers/customers, with a total of 56.8 million, against 56.3 million for Cingular."

IDC expects wireless carriers to experience double-digit growth in revenue from email and TV/video services because of the rising availability of easy-to-use and high quality services like mobile TV, growing popularity of flat-rate data plans, improving user interface (UI) technologies, and emergence of add-value features like mobile advertising and user-generated content and services.

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