Mike Masnick at Techdirt Wireless notes that the widely anticipated Push To Talk (PTT) wars never materialized. Of particular interest to me, he also notes that:
Carriers may be realizing that, while useful in some cases, PTT alone was not the only reason for Nextel's enviously high ARPUs (average revenue per user).
Allow me to share some specifics on why Nextel has such high ARPU ($71 vs industry standard of $50):
- Focus on business users rather than consumers -- less fickle, more focused on value rather than price.
- Billing plans that help businesses. Nextel is the only carrier I know of that allows a business to pay for a wireless phone data and PTT service on its bill, while simultaneously allowing the employee to have their own personal bill for a normal wireless voice plan.
- Strong focus on wireless data applications that add business value rather than provide entertainment.
- Credible wireless data phones (J2ME) for under $150.
- Wireless data plans that provide adequate service for under $10 per month.
- Vertical focused marketing that helps sell to business within particular verticals.
In summary, Nextel focuses on customers that are happy to pay for value.
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Posted by: bill mitchell | Monday, March 14, 2005 at 02:53 PM