To improve the accuracy of traditional method for customer segmentation, the Large Average Submatrix (LAS) biclustering algorithm was used, which performed clusting on customer samples and consumer attributes simultaneously to identify the upscale and high-value customers. By introducing a new value yardstick and a novel index named PA, the LAS biclustering algorithm was compared with K-means clustering algorithm based on a simulation experiment on consumption data of a telecom corporation. The experimental result shows that the LAS biclustering algorithm finds more groups of high-value customers and obtains more accurate clusters. Therefore, it is more suitable for recognition and segmentation of high-value customers.