A recent report from Wireless Intelligence sheds new light on the interpretation of key performance indicators such as market penetration and ARPU. The analyst firm carried out research in Western Europe and North America, aiming to determine to what extent the phenomenon of multiple mobile connections can affect such operator metrics. The study – Multiple connections per user: The impact on penetration and ARPU – measured the number of multiple connections per user – either active SIM cards (GSM networks) or unique mobile phone numbers where SIM cards are not used (CDMA networks) – in order to calculate values of real penetration per user and average revenue per user, unlike the per-connection values reported by operators today.

In North America, it became apparent that consumers on average held 1.3 mobile connections each in 3Q09. This means that real market penetration in the region stands at 71 percent compared to the reported figure of 92 percent. And whilst reported revenue per connection appears to be falling year-on-year, revenue per user is in fact increasing, meaning North American consumers are still spending more on mobile but spreading this across multiple connections. In fact, the study revealed that real revenue per user in North America has increased from US$60 to almost US$64 since 2006. Such growth counters fears that the economic situation has led to a slowdown in spending in the sector. Interestingly, the report found a less encouraging situation in Western Europe. With regional consumers on average holding 1.5 mobile connections each in 3Q09, real market penetration per user has reached 87 percent (compared with 130 percent reported penetration per connection).  However, real revenue per user is declining and will fall to EUR33 this year from EUR34.2 in 2008, reflecting a need for mobile operators in the region to ramp up investment in value-added services and network quality.