So How Much Will PTT Boost ARPU?
I think we can finally put one debate to rest: is PTT DOA or is it a driver of increased revenues? Some have looked at the challenges of Sprint and VZW with PTT, and concluded that it is a marginal success if at all. But to really consider PTT, we should look at Boost mobile, a Nextel-owned MVNO targeting youth with prepaid plans. Nextel offered Boost market and financial data for the first time, putting a dollar figure to the value of a (low latency, high quality) PTT service offering. Boost has reported ARPU of $41. Forty one dollars! That is double the average prepaid mobile ARPU. What is the main differentiator of Boost over other prepaid services? Good segment marketing, downloadable Java apps, and solid PTT. They price their PTT use at $1 a day for unlimited use each day that the sub does any PTT. What portion of that 2x ARPU premium is owed to PTT? It’s not clear, but it is likely more than $10.
