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Since smartphone users are usually heavy data users as well, this should continue to help increase postpaid ARPUs further.
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Increasing smartphone penetration should however enable the company to post a sequential increase in postpaid ARPU levels, bolstered by data ARPUs.
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But Sprint is hoping that selling the iPhone will pay off in the long-term via reduced churn and higher data ARPUs.
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Meanwhile, increasing smartphone penetration should continue to help the company post a sequential increase in postpaid ARPU levels, bolstered by data ARPUs.
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Currently, the low 3G penetration means that the impact of the higher 3G ARPUs is more than offset by the decline in voice ARPUs.
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However, the 3G subscribers it has been adding using low-end smartphones have not been of the highest quality as evidenced by the declining 3G ARPUs.
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Increasing 3G adoption will serve to boost its already increasing data ARPU levels further, more than compensating for the fall in voice ARPUs as a result.
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With the wireless industry getting more saturated, the focus has shifted from acquiring new subscribers to increasing the data usage of the existing subscriber base, and hence data ARPUs.
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Over time, we expect a steadily growing 3G adoption to boost the already increasing data ARPU levels further, more than compensating for the fall in voice ARPUs as a result.
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