DEA Analysis of Indian Telecom Industry

8/10/2019 DEA Analysis of Indian Telecom Industry

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TELECOM INDUSTRY IN INDIA - DEA

Prepared B

Academic

Renjith Raj

Swapna Ya

Datta Patil

Mridul Pah

Manu Pant


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PGPM1013, Operations Management Academic Group 5

Road Map

1) Introduction

2) Project Methodology

3) Data Analysis

4) Target & ImprovementOpportunities

5) Conclusion6) Future Scope


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1. Introduction

1.1 Snapshot of the Telecom growth in India

Second largest telecom network after China

Overall tele density of 73%, Urban 149.55%,rural 39%

Internet mobile devices 176.50 Million

New paradigm in many industries

10% GDP/capita 0.81%GDP/capita So


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18.22%

26.22%36.98%

52.74%

70.8

48.10%

66.39%

88.84%

119.45%

156.

5.89% 9.46%15.11%

24.31%33.8

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%

2007 2008 2009 2010 20

Tele-Density

Overall Urban Rura

1.2 Background of Study

1. Fall in the subscriber base

2. Few Research efficiency comparing of the network service providers onthe basis of both network related andcustomer care related parameters


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2. Project Methodology

Identification ofrelevant I/p and o/pvariables

Calculate Relative1. Kano Model

2. Data Envelopment A


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Methodology

Data Envelopment Analysis

Evaluation of the National Telecom Service Providers in India based on:

Network Service Parameters

Customer Service Parameters

Output Variables (for both cases)

Subscriber Base

Revenue Per Quarter

Input Variables

The selection of the input variables is based on the results of a survey which is evaluated by using

Input 1

Network ServiceParameters

Input 2

Customer Service

Parameters

DataEnvelopment

Analysis

Subsc

Reven

Input VariablesSelection through

Kano Model

O


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Kano Model

Delighters

Excited Quality

Dissatisfier

Must-beExpected Quality

Didnt know I

wanted it but I

like it.

Cannot increasemy satisfaction, but

can decrease.

Dissatisfaction

Satisfaction

Service

Performance

Service

Performance

Satisfier

One DimensionalDesired Quality Selected

set of input

variables

for Network

Service

and

Customer

Service

The selection of done though Ka

A general survey

understand the preferences regservices provideoperators.

Those parameteidentified as Dis-selected as inpu


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3. Data Analysis

Operators serving Across India

The operators serving across

India are :

1. Bharti Group

2. Aircel Group

3. Vodafone

4. Idea

Input & Output Variables

Network Parameters (InputVariable)Account Down TimeCall Setup success rateTCH CongestionCall drop rate

Customer Parameters (Input

Variable)Accessibility of Call center

Metering and billing credibility (Pre-Paid)Metering and billing credibility (Post-Paid)% of calls answered in 60 seconds

Output VariablesSubscriber BaseRevenue Per Quarter

Sample D


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The above Zones along wthat excels in both customand network Parameters

Data Analysis

Performance on NetworkParameters


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Data Analysis

Performance on Customer CareParameters


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4. Target & Improvement Opportunities

Network Related Improvements - AIRTEL

DMU NO CODE STATE EFFICIENCY

2 A P2 An dh ra Prade sh 1.00000 1.000 Con stant 1.000 AP 2

6 ASM6 Assam 0.19979 0.200 Increasing 0.157 BH10 0.043 TN76

10 BH10 Bihar 1.00000 1.000 Constant 1 .000 BH10

14 DLI14 De lhi 0.55354 0.553 Increasing 0.450 AP2 0.034 MBI46 0.069 TN74

18 GUJ18 Gujarat 0.46887 0.470 Increasing 0.062 AP2 0.250 MH50 0.157 TN76

22 HP22 Haryana 1.00000 1.000 Constant 1.000 HP22

26 HR26 Hi mach al P rad es h 0. 10600 0. 106 I ncr eas in g 0. 066 A P2 0. 037 B H10 0. 002 TN 76

30 J &K 30 J am mu & K as hm ir 0. 12742 0. 128 I ncr eas in g 0. 076 A P2 0. 039 B H10 0. 013 TN 76

34 KOL34 Kol kata 0.22183 0.222 Increasing 0.102 AP2 0.065 G UJ17 0.055 TN74

38 KR38 Kerala 1.00000 1.000 Constant 1.000 KR38

42 K TK42 Karnataka 0.80995 0.804 In cre asi ng 0.016 AP 2 0.720 BH10 0. 068 TN 76

46 MBI46 Mumbai 1.00000 1.000 Constant 1.000 MBI46

50 MH50 Mah arash tra 1.00000 1.000 Con stant 1.000 MH50

54 MP 54 Mad hy a P rad es h 0. 98117 0. 985 I ncr eas in g 0. 067 K TK 44 0. 842 MH50 0. 077 TN 76

58 N E58 N orth East 0.13159 0.132 In cre asi ng 0.034 BH10 0.098 TN 76

62 OR62 Orissa 0.35320 0.351 Increasing 0.007 AP2 0.295 BH10 0.048 TN76

66 PB66 Punjab 0.41218 0.414 Increasing 0.261 AP2 0.096 MH50 0.058 TN76

70 RAJ 70 Raj asthan 0.67970 0.682 In cre asi ng 0.682 TN 76

74 TN74 Tamil Nadu ( incl.Chennai) 1 .00000 1.000 Constant 1.000 TN74

78 UPE78 UP(E) 0.76094 0.756 Increasing 0.027 AP2 0.503 BH10 0.227 TN76

82 UPW82 UP(W) 0.51654 0.518 Increasing 0.018 AP4 0.363 MH50 0.136 TN76

86 WB86 We st Be ngal 0.49147 0.490 In cre asi ng 0.189 AP 2 0.256 BH10 0. 044 GUJ17

BENCHMARKS

Customer Related Improve

DMU NO DMU Name CODE STATE EFFICIENCY

2 AP2 Andhra Pradesh 0.857996837 0.857996837 Increasing

6 ASM6 Assam 0.20675019 0.202303949 Increasing

10 BH10 Bihar 1 1 Constant

14 DLI14 Delhi 0.435809467 0.435809467 Increasing

18 GUJ18 Gujarat 0.448286247 0.45281439 Increasing

22 HP22 Haryana 0.17599705 0.177774798 Increasing

26 HR26 Himachal Pradesh 0.094314148 0.094314148 Increasing

30 J&K30 Jammu & Kashmir 0.109204268 0.114592479 Increasing

34 KOL34 Kolkata 0.171035935 0.171035935 Increasing

38 KR38 Kera la 0.622751407 0.622751407 Increasing

42 KTK42 Karnataka 0.757643078 0.757643078 Increasing

46 MBI46 Mumbai 0.179220682 0.179220682 Increasing

50 MH50 Maharashtra 0.964552911 0.964552911 Increasing

54 MP54 Madhya Pradesh 1 1 Constant

58 NE58 North East 0.143069781 0.138503724 Increasing

62 OR62 Orissa 0.353105072 0.353105072 Increasing

66 PB66 Punjab 0.320798325 0.325883319 Increasing

70 RAJ70 Rajasthan 0.681927174 0.681927174 Increasing

74 TN74 Tamil Nadu (incl.Chennai) 0.63247506 0.63247506 Increasing

78 UPE78 UP(E) 0.717972022 0.721675247 Increasing

82 UPW82 UP(W) 0.501594987 0.501594987 Increasing

86 WB86 West Bengal 0.436296983 0.436296983 Increasing

Benchmarked operators and the relative level of improvement is calculated

Operators should study the feasibility of attaining the given target using a cost ben

This improvement matrix is provided for all the operators.


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Managerial Implications

Clear leader in customer service parameters & congestion freeNeed 12% improvement in call drop rateNeed 21% improvement in account down time

Need to substantially increase subscriber base & RevenueNeed 14% improvement in Call drop rateNeed 17% improvement in account down time (See TN)Need Avg 10.8% improvement in metering credibility (Prepaid)

Company excels in call center access & call answering speed

Need 51% improvement in account down timeNeed 22% improvement in congestion in networkShould also improve billing credibility

Fairly good on customer service parametersNeed 28% improvement in account down timeNeed 12% improvement in congestion in network


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Conclusion

88 DMUs considered for the analysis on the data from TRAI

Vodafone has highly efficient stores across India

Airtel has most consistent performance on both network & customerparameters

Potential areas of improvements & targets identified

Can use for decisions such as target setting, new project initiation,expansion, staffing, budget allocation, infrastructure setup


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Future scope

Can include more regional players in a further wider study

Performance analysis + sensitivity analysis could give clear prioritiesfor targeting

DEA Analysis of Indian Telecom Industry

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