Verizon Wireless Smartphones Generates 7 Percent More Revenue per User than AT&T iPhones

Validas, the leader in on-demand wireless business intelligence, reports that
its studies show that Verizon Wireless Smartphone users are generating average
revenue per user (ARPU) of $105.45 while AT&T
Wireless iPhone users generate ARPU of $98.20.
Despite this disparity, iPhone users are more likely to experience "bill
shock."

Validas finds that at least 6 percent of iPhone users receive bills totaling
more than $200 per phone per month, versus less than
5 percent of Verizon Wireless Smartphone users. Further, more than 1 percent of
iPhone users receive bills of more than $500 per
month compared to less than half of 1 percent of Verizon Wireless Smartphone
users.

"When we see iPhones with shocking bills, it’s usually because of
international voice and data usage," says Ed
Finegold
, chief analytics officer for Validas. "That kicks off a chain
reaction that drives up the taxes and carrier surcharges on the bill too,"
Finegold says. The majority of Verizon Wireless Smartphone bills that exceeded
$200 per month included charges for new equipment –
likely the purchase of a new Smartphone.

Other typical bill inflators include overage fees for voice and messaging as
well as charges for long distance calls made to overseas destinations.

"Verizon Wireless Smartphone bills seem to be more predictable than AT&T
Smartphone bills in general," says Validas CEO Tom
Pepe
. "We see trends where almost twice the percentage of AT&T
BlackBerrys are billed more than $200 per month
compared to Verizon Wireless BlackBerrys," he says.

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