Mobile operators keep prices high
Speaking at a recent mobile conference he said that the mobile operators wanted to look after their revenue from SMS and voice to protect their profits. Smith said that these big mobile providers also controlled the speed of growth of the wireless market.
“Growth could be significantly more if they stopped worrying about cannibalizing other products,” said Smith.
Smith added that in SA the mobile providers have far higher ARPU’s (average revenue per user) than international operators.
ARPUs are currently seen as the benchmark for the profitability of mobile providers worldwide, with the reasoning being that the more your customers spend on average the better.
Smith criticized the mobile operators as having not embraced the market to grow it.
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