100 KPI’s for Mobile Telecom Operators


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 telecom industry 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 activity monitoring (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.

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

Subscribers (Subs)

  1. Total Subs
  2. 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 Utilization
  5. 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 Site
  5. 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 Covered
  2. Population Covered
  3. Area Covered
  4. 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 Share
  3. Minutes Market Share

Incremental Performance

  1. Share of Net Adds Subs
  2. Share of Incremental Revenue
  3. Quarterly Sites Added
  4. MRPU ( Marginal Revenue Per User)
  5. Growth
    1. Subs Growth
    2. Revenue Growth
    3. Services Revenue Growth
    4. Services Revenue Acceleration
    5. ARPU Growth
    6. ARPM Growth
  6. 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 Sites
  4. Number of MSC Sites
  5. Number of Employees
  6. MSC/ Subs
  7. MSC/ BTS
  8. BTS/ Subs (1000)
  9. BTS/ Km2
  10. Capex
    1. 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 Performance
    1. RTT Delay (Ms) (800)
    2. Application Through Put ( kbps) (25 Kbps)
    3. Call Setup Time
  2. Network Congestion
    1. 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 Rate
    2. 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 Hold
  4. Top 2 Players Share
  5. Top 2 Players Share Change
  6. HHI Index
  7. 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)
  3. Subs/Km2/MHz  (100)
  4. Subs/Km2 (Urban) (2000)
  5. Spectrum per Operator (MHz) (5)

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