SP Billing, Revenue Management, and Monetization 3

Question 1

What does ARPU stand for, and what does it measure?

Accepted Answer

Average Revenue Per User — mean revenue generated per subscriber in a period

Answer

ARPU (Average Revenue Per User) is calculated by dividing total revenue by the number of subscribers, and it is a key KPI for measuring monetization effectiveness.

Question 2

Which pricing strategy involves offering a basic service tier for free while charging for premium features or higher usage levels?

Accepted Answer

Freemium model

Answer

The freemium model attracts users with a no-cost entry tier and then monetizes them by upselling premium capabilities, higher quotas, or advanced features.

Question 3

What is a 'convergent billing system' in a service provider context?

Accepted Answer

A unified billing platform that processes charges for multiple service types (voice, data, TV, IoT) in a single system

Answer

A convergent billing system manages all service types — fixed, mobile, broadband, IPTV, and IoT — within one platform, providing a single customer bill and unified revenue view.

Question 4

Under PCI-DSS compliance, service providers who store, process, or transmit cardholder data must meet which minimum requirement before handling recurring payments?

Accepted Answer

Achieve the appropriate PCI-DSS compliance level and complete annual assessments or self-assessment questionnaires

Answer

PCI-DSS (Payment Card Industry Data Security Standard) requires any entity handling cardholder data to comply with its 12 requirements, validated annually through QSA assessments or SAQs based on transaction volume.

Question 5

What is the purpose of a 'grace period' in subscription billing?

Accepted Answer

A defined period after a failed payment during which service continues while the provider retries collection

Answer

A grace period allows service to remain active for a short window after a payment fails, giving the provider time to retry the charge or contact the customer before suspending service.

SP - Certified Service Provider Practice Test

SP - Certified Service Provider Practice Test

SP Billing, Revenue Management, and Monetization 3