The expectation has been that rural subscribers will offer much lower ARPU than their peers in cities. Is this really true?
Learn more about rural ARPU.
Many in the industry have long been sceptical about the financial returns that can be secured from deploying rural connectivity. There’s been an assumption that the revenue potential from some of the most remote locations is severely limited. Experiences from TIP show that these assumptions may well be wildly inaccurate.
For example, research presented at the event showed that ARPU from some remote deployments very quickly reached similar levels to that enjoyed in cities, a finding completely unexpected for many.
Another limiting factor that has been cited in the past is handset availability. If there are no handsets, how can users begin to access services? Well, it turns out that there are significant second-hand markets, which mean that potential subscribers could quickly access handsets. One case reported that users emerged within two or three days, already equipped with devices, pointing to thriving markets with previously unsuspected stocks of devices.
So, it really does seem that, “if you build it, they will come” – and, better still, they will pay, which may start to shift thinking at a wider level. Rural deployments certainly fulfil economic development goals but, contrary to what some might things, there’s really profit in those hills after all – something we’ve been saying for years.
Get in touch to find out how to profit from rural connectivity.
