This white paper analyses the “ARPU”, Average Revenue Per User, that is the telco industry’s favourite four letter word. ARPU is a measure of monthly revenue divided by the total number of end-user customers. In this white paper we will review how and why telcos can and should play a stronger role in the identity industry. We will also provide a financial model for how various aspects of identity management can contribute to ARPU. Additionally, we will highlight some of the challenges facing the identity industry as a whole and some of the issues telcos will have to face as they navigate their way through the identity ecosystem.