The Economics of 5G: Shifting from Revenue-per-User to Revenue-per-Machine

This paper introduces the term ARPM (Average Revenue -Per-Machine), as the forthcoming 5G will also have a machine orientation, not only a human one. From the economic perspective, such a new term will have implications for how service operators value their 5G customers. The number of machines will be important in reflecting the commercial success of a company. This paper argues that there arc three strategic implications of this new term. First, the determining factors of commercial success are the type of applications, type of sector and number of machines. Second, machines may behave either as autonomous customers, or as digital slaves of the human subscribers. Third, the Quality of Experience perspective is strongly associated with the generation of smart data, supported by advanced sensors and robust algorithms. The more specialized the machines, the higher the economic value generated, and the more machines satisfactory can he upgraded.