Interpretation: Correlation between Airtel All India ARPU and number of subscribers: ARPU is Average Revenue per User earned by the service provider in a specified time period. The ARPU and the number of subscribers are negatively co-related. The degree of co-relation is -0. 96613 under Pearson and -0. 9902 under Spearman. The Indian telecommunication industry is growing by attracting low income consumers in rural India.
These customers have lower level of disposable income and tend to the service judiciously.So the ARPU for the new customers is lesser than that for the older customers. Thus, as the number of subscribers increases, the ARPU decreases. This relation is extremely important from the business point of view. The total revenue generated by the company is the product of ARPU and the number of subscribers. Thus if the number of subscribers increases but the ARPU decreases at a faster rate, the total revenue of the company might even decrease.
The cellular operators have to ensure that they maintain ARPU even while aggressively increasing the number of subscribers. Correlation between Vodafone All India ARPU and number of subscribers: The degree of co-relation between Vodafone All India ARPU and number of subscribers is under Pearson and -0. 9902 under Spearman. Correlation between Airtel Mumbai ARPU and number of subscribers: The degree of co-relation between Vodafone All India ARPU and number of subscribers is -0. 95296 under Pearson and -0. 98529 under Spearman.
