How can we increase revenue in low ARPU market?

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&gid=137157&discussionID=201939&sik=1224326366368&commentID=310731&goback=%2Ehom%23commentID_310716%2Ehom#commentID_310731
(In answer to a generic queston on Linked in about the dynamics of increasing ARPUs)

Hi Syed

In such times, when voice and text is commoditizing, the buzzword is services as all the other 5 answers here indicate. However, it is more than a ringtone, content, games etc. M Commerce/ Market Services has answers but they wont be easy in coming. 3G services is another interesting answer.(in developing countries). However in true sense 3G and other market services will be a long haul and sustained investment game. Few questions that need to be first thought through before comitting resources

1. Will operators monetize services from the start (meaning lower adoption rates) or introduce a free service first and then monetize the full monty (meaning the customer will upgrade)
2. We are talking of changing consumer behaviour- thats a long incubation
3. How do you account for loss in revenues due to churn or a competitor running a more attractive price for the same service?...
4.... hence the risks to the returns versus investments.

In a country like India, these considerations are significantly impacting the Operator decisions and willingness to commit investments required. Both these solutions do need long partnerships and incubation periods. These solutions need to be looked at from a ROI versus Investment perspective. This is a long haul but a source of competitive advantage and but obviously higher revenues (ARPUs).

My opinion on this: Models can fail, platforms will not. Models meaninging stand alone business models. To generate long term cash flows, we need to look at Platforms, for instance, mobile manufacturer - Operator - Fertiliser companies - Meterological department - Banks - Travel Agencies - Others. This downturn is a good time to forge these links. Only when you take "all under one roof" approach, will you be able to compell the consumer to dish that much extra which is going to add the whole lot more to your ARPU.