Posted by: WPeterson
ARPU, data services, Sprint
Sprint’s been happy to boast about WhisperNet subscriber additions to its network that come in the form of Amazon Kindle users, but those same metrics don’t look so pretty when Nielson breaks down the estimated Kindle ARPU for Sprint: Just $2, compared to approximately $56 to Sprint’s average post-paid phone service subscriber.
Looks like Jeff Bezos can drive almost as hard a bargain as Steve Jobs. Why can’t service providers negotiate a reasonable cut with these gadget superstars? (Let’s make that a rhetorical question)
What’s most worrying to me, as Kate noted previously, is that telcos are racing to duplicate the Kindle’s “success”. Are carriers in a mad dash to the bottom? Am I missing part of the picture here, or is Sprint somewhat crazy for touting its success in rock bottom-ARPU services? Why not just sell an extra couple ringtones and call it a day?