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100 KPI’s for Mobile Telecom Operators

47 Votes

Telecommunication service industry around the world is facing significant challenges from competition,

technological revamps at very short frequencies and never-ending customer demands. In full-grown markets, the

preferred path to growth is that of acquisition of competitors or alliance with newer partners. On the other hand,promising markets with explosive demand provide vast opportunities for the players.

Today, telecommunication industry is no longer technology centric, but it revolves more around customer

relationship. Customer satisfaction and marketing intelligence with innovative promotional schemes and advanced

technology are the drivers of business. Also, cutthroat competition and mammoth investments in the telecomindustry churn away profit margins and make intelligent decision making critical. And how do CXOs make

decisions? Through KPI monitoring, control and analysis.

As in the rest of the industries, a performance indicator or key performance indicator (KPI) is a measure

of performance. Such measures are commonly used to help an organization define and evaluate how successful it

is, typically in terms of making progress towards its long-term organizational goals.

KPIs can be specified by answering the question, “What is really important to different stakeholders?”. KPIs

may be monitored using Business Intelligence techniques to assess the present state of the business and to assist

in prescribing a course of action. The act of monitoring KPIs in real-time is known as business activitymonitoring (BAM). KPIs are frequently used to “value” difficult to measure activities such as the benefits of

leadership development, engagement, service, and satisfaction.

My friend Pareek has just sent me a set of 100 KPIs for telecom operators. He includes some illustrative figures

in the brackets that show indicative values for an Asian Operator we will not disclose. Hope it helps.

Best regards, CVA.

100 KPI’s for Telecom Operators (Mobile Network Operators)

Subscribers (Subs)

1. Total Subs2. Subs Segmentation: Prepaid (95%), Post Paid (5%)

3. Churn per month (3%)

4. Subscriber per Employee (13,000)

Usage

1. Minutes of Usage (MOU)

1. MOU Segmentation: Prepaid (400) , Postpaid (1000), Aggregate (420)

2. MOU Segmentation: Incoming (220), Outgoing (200), Aggregate (420)

2. Number of Outgoing SMS Per Sub Per Month (30)

3. Minutes Carried Per Month (MON) (50 billion)

4. % Airtime Capacity Utilization5. Minutes Per Site

6. Number of Calls

7. Number of Calls per Subscriber

8. Average Call Duration

9. Roaming Minutes

10. International Roaming Minutes

11. International Roaming Minutes Segmentation: Incoming (64%), Outgoing (36%)

Revenue

1. ARPU ( Average Revenue Per User)1. ARPU Segmentation: Voice ($4), Data ($8), Aggregate ($4)

2. ARPU Segmentation: Prepaid ($3), Postpaid ($11), Blended ( $4)2. ARPM (Average Revenue Per Minute)

1. ARPM Segmentation: Prepaid ($0.15), Postpaid ($0.022), Blended ($0.02 )3. Average Revenue Per Call

4. Average Revenue Per Cell Site5. Average Revenue Per Employee

6. Revenue Breakup (%)1. Access: Connection, Subscription (15%)

2. Wireless Voice (55%)3. Data (5%)4. Internet (5%)

5. Interconnect (10%)6. Roaming (10%), International Roaming Revenue (1%)

7. International Roaming Revenue Segmentation: Postpaid (99%)

Coverage and Spread

1. Towns Covered2. Population Covered

3. Area Covered4. Globalization: Number of Countries Operating Entity

5. % Traffic Within Own Mobile (55%)6. Top 50% Users Revenue %

7. Top 50% Sites Revenue %

Market Share

1. Subs Share

2. Revenue Market Share3. Minutes Market Share

Incremental Performance

1. Share of Net Adds Subs

2. Share of Incremental Revenue3. Quarterly Sites Added

4. MRPU ( Marginal Revenue Per User)5. Growth

1. Subs Growth2. Revenue Growth

3. Services Revenue Growth4. Services Revenue Acceleration5. ARPU Growth

6. ARPM Growth6. Subs Added / Retail Point of Presence (POP)

Operational Efficiency

1. Average Margin Per User (AMPU)

1. AMPU Segmentation: Prepaid (More),Postpaid (Less), Blended()2. Employee Cost / Town Covered ($2500)

3. Number of BTS Sites4. Number of MSC Sites

5. Number of Employees6. MSC/ Subs

7. MSC/ BTS8. BTS/ Subs (1000)9. BTS/ Km2

10. Capex1. Capex (% Revenue) (25%)

2. Capex per Sub ($140)3. Capex per Minute ($0.07)4. Capex per Site ($100K )

11. Opex

1. Opex per Sub ( $3)

2. Opex per Minute ($0.02)3. Opex per site ($3000)

12. Gross Capex ( Gross Fixed Assets + Incremental Capex)

13. Opex as % Revenue (60%)14. Spectrum Charges as % Revenue (2%)

15. License Fee as % Revenue (6%)

16. InterConnect Cost as % Revenue (16%)17. Business Operations Cost

1. Service Opex (Customer Care & Billing, Service Creation & Administration) as % Revenue (15%)

18. Network Operating Cost as % Revenue (16%)

1. Rental as % Network Opex (15%)2. Power & Fuel as % Network Opex (25%)

3. Repair & Maintenance as %Network Opex (20%)

4. Transmission as % Network Opex (15%)5. Core Network as % Network Opex (10%)

6. Hardware and Software as % Network Opex (10%)

19. Labor Cost (% Revenue) (5%)

20. OSS/ BSS Ratio

Marketing

1. Subscriber Acquisition Cost (SAC ) : Dealer Commission, Terminal Subsidy, Sales, Marketing,Distribution

1. SAC as % Revenue (10%)

2. SAC / net Addition (12$)

3. SAC / Minute (0.001$)2. Sales Outlet

1. Company Owned Sales Outlet

2. Number of Retail Outlets or Point of Presence (POP)

Quality

1. Service Performance1. RTT Delay (Ms) (800)

2. Application Through Put ( kbps) (25 Kbps)

3. Call Setup Time

2. Network Congestion1. Point of Interconnection (POI) Congestion (<0.5%)

3. Connection Establishment (Accessibility)

1. Call Setup Success Rate (CSSR) (>95%)

2. Standalone Dedicated Control Channel (SDCCH) Congestion (<1%)3. TDH Congestion (<2%)

4. Connection Maintenance (Retainability)

1. Call Drop Rate (CDR) (< 2%)2. Worst Affected Cells for Call Drop Rate (<5%)

3. Connection with Good voice quality (>95%)

5. Service Quality

1. Prepaid – Prepaid Service Success Rate2. Number Portability – Drop Rate

3. Handover Success Rate

6. Network Availability

1. BTSs Accumulated downtime (<2%)

2. Worst Affected BTSs due to downtime (<2%)

Green and Sustainability

1. Energy Consumption/ Sub (10 Kwh)

2. Co2 Emission/ Sub (6.8 Kg )

Financial & Valuation

1. Gearing ( net Debt/ EBIDTA) (2.0)

2. EBIDTA % Revenue (30%)3. PAT % Revenue (10%)

4. ROIC (EBIDTA/ Gross Capex) (20%)

5. FCF (EBIDTA – Capex –Tax) % Revenue (5%)6. Capital Productivity (Revenue / Gross Capex) (67%)

7. EV / EBIDTA (8.0)

8. EV/ Sales (3.0)

9. EV/ Subscribers ($200)10. EV / GCI (1.0)

11. P/E

Country Telecom Sector KPI

1. Penetration

2. Penetration ( >5Years Population)

3. Penetration per House Hold4. Top 2 Players Share

5. Top 2 Players Share Change

6. HHI Index7. Pricing Long Distance/ Local Price Ratio (1.5)

8. Average F2M Interconnect Rate ($0.005 / Min)

9. Average M2M Interconnect Rate

10. Sim/ User ( Number of Subscribers/ Number of handset Sales) (1.5)11. ARPU (PPP Adjusted)

12. ARPU % of disposable income

13. Mobile Revenue/ GDP (2%)

14. Regional Roaming Usage (Roaming Travelers / Intra Regional Travelers)

Telecom Tower

1. Tenancy Ratio (2.0)2. Average Rental per Tenant Per Month ($600)

Spectrum Efficiency

1. Busy Hour mErlangs carried per sq km per M Hz (4000)

2. Busy Hour mErlangs per subscriber (40)

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3. Subs/Km2/MHz (100)4. Subs/Km2 (Urban) (2000)

5. Spectrum per Operator (MHz) (5)

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Published:

April 14, 2010 / 7:00 AM

Category:

Consulting

Tags:

KPIs, Pareekh Jain, telecom

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