KPI - Key Performance Indicators KPI tells the performance of a network on a daily/weekly/monthly basis, which helps to improve the

network, so that operator & customer both enjoys the service at its most. Key Performance Indicators for Telecom Industry are:Systems and Network Performance Analysis / Capacity Planning

Availability Grade of service Service life of equipment Bit error ratio (data, bits & elements transfer) Bit rate (data, bits and elements transfer) Downtime / Time out of service Call completion ratio Cost of support systems Cost of operational systems Average call length Analysis of ASR routes Network traffic, congestion Idle time on network Dropped calls

Quality / Usage (Airtime): Analysis of the volume of successful calls

Mean Opinion Score Service Duration of calls Billed amount on each call

Coverage

% of land covered with services % of population covered with services Average land unavailable to services Average population unavailable to services Access to customer service

Faults and complains (Trouble tickets analysis)

% of open and level of escalation priority required % closed Mean time to resolved Work in progress Customer service level statistics

Customer Analysis

Customer segmentation Analysis of subscriptions Top N customers Churn (No. of Subscriber who stopped using Services or left particular network)

ASR (Answer Seizure Ratio) - Number of successfully answered calls divided by the total number of calls attempted (seizures) multiplied by 100. (Answer / Seizure) * 100 = Answer Seizure Ratio. Standard Value = 40% - 45%. MOU (Minutes of Usage) per Subscriber It calculates the Total Minutes used in a Network divided by the number of subscribers. CCR (Call Completion Ratio) - Total no of calls completed / Total no of calls attempted * 100%. Higher the ratio is better. Standard Value > 98%. LUSR (Location Update Success Rate) Its a ratio of no of times mobiles update its location successfully to the no of times mobiles request network for location update. LUSR = (Location Update Success / Location Update Request)*100. Standard Value >= 98%. PSR (Paging Success Rate) Its a ratio of no of times network successfully find the mobiles to the no of times network tries to locate the mobiles within its area. PSR = (No of Network Paging Response / No of Network Paging Attempts)*100. Standard Value >= 92%. 100 KPIs for Mobile Telecom Operators 45 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 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.

100 KPIs for Telecom Operators (Mobile Network Operators) Subscribers (Subs) 1. 2. 3. 4. 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%) Total Subs Subs Segmentation: Prepaid (95%), Post Paid (5%) Churn per month (3%) Subscriber per Employee (13,000)

Coverage and Spread 1. 2. 3. 4. 5. 6. 7. Towns Covered Population Covered Area Covered Globalization: Number of Countries Operating Entity % Traffic Within Own Mobile (55%) Top 50% Users Revenue % Top 50% Sites Revenue %

Market Share 1. Subs Share 2. Revenue Market Share 3. Minutes Market Share Incremental Performance 1. 2. 3. 4. 5. Share of Net Adds Subs Share of Incremental Revenue Quarterly Sites Added MRPU ( Marginal Revenue Per User) 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. 2. 3. 4. 5. Busy Hour mErlangs carried per sq km per M Hz (4000) Busy Hour mErlangs per subscriber (40) Subs/Km2/MHz (100) Subs/Km2 (Urban) (2000) Spectrum per Operator (MHz) (5)