This is the reason ARPU Smartfren Telecom (FREN) continues to decline

Reporter: Ridwan Nanda Mulyana | Editor: Anna Suci Perwitasari

KONTAN.CO.ID – JAKARTA. Apart from the problem of less than satisfactory financial performance, PT Smartfren Telecom Tbk (BRAKE) also experienced a decrease in average revenue per user or user average revenue per user (ARPU).

In fact, at the same time the number of customers and revenue BRAKE continues to increase. At the end of 2019, the telecommunication company ARPU decreased 25% compared to 2018. While in the first period 2020, ARPU recorded BRAKE also dropped 17% from the same period in the previous year.

Related to this, the President Director BRAKE Merza Fachys explained that the decline in ARPU was due to Smartfren’s strategy of making many product variants. However, the increase in the number of subscribers mostly occurred in the middle to lower segment.

Also Read: Smartfren (FREN) is still making a loss even though customers and revenue increase, this is the reason

“We make from the cheapest, to the most expensive, quite complete. The number of additions of millions of customers is denominated in the lower middle,” he explained in a virtual public expose, Friday (14/8).

Even so, Merza sees this condition as not an obstacle. Because, the most important thing for BRAKE now is to be able to attract as many users as possible in order to boost revenue.

“It simply came to our notice then revenue showed a significant increase, subscribers increased significantly. This is what causes us to continue to expand our customers, “he said.

The increase in the number of customers in any segment, added Merza, is a positive signal for Smartfren’s future business development. The most important thing is how to keep customers from switching, while continuing to attract new users.

“So we are sure that the ARPU will gradually increase. We are still in development, we still need many more customers, which we hope will use Smartfren products,” Merza concluded.