Discount retailers=lower ARPU

SEATTLE-Wireless users who buy handsets from carriers’ stores are far more likely to spend more on monthly mobile service than those shopping at big-box retailers, according to new figures from M:Metrics.
The market research firm found that 56 percent of consumers who bought a phone at a network operator’s outlet pay more than $60 a month for their wireless services. Those who spend less than $60 a month were more likely to have purchased their handset through Best Buy, RadioShack or other indirect retailers.
Network operators increasingly are pushing mobile games, music and other services at the retail counter in an effort to boost data revenues. But as mega-corporations such as Wal-Mart increasingly make wireless phone sales a priority, carriers are paying the price in terms of recurring revenues, said senior analyst John Jackson.
“The indirect channel has yet to raise the bar in terms of aggregate voice and data ARPU,” Jackson said. “The carriers are leaving data ARPU on the table as discount retailers like Wal-Mart dedicate more real estate to mobile products and consumers flock to the Internet to find the most inexpensive handset and cheapest plans.”