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TELECOM INDUSTRY IN INDIA - DEA

Prepared By
Academic Group 5
Renjith Raj
Swapna Yaski
Datta Patil
Mridul Paharia

Manu Pant

Road Map
1) Introduction

2) Project Methodology
3) Data Analysis
4) Target & Improvement
Opportunities
5) Conclusion
6) Future Scope

PGPM1013, Operations Management Academic Group 5

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%

PGPM1013, Operations Management Academic Group 5

GDP/
capita Source: World Bank
3

1.2 Background of Study

Tele-Density
Overall

1. Fall in the subscriber base

Urban

Rural

180.00%

169.17%
156.94%

160.00%

144.55%

140.00%

119.45%

120.00%
100.00%

88.84%

80.00%
60.00%
40.00%
20.00%

2. Few Research efficiency comparing


of the network service providers on
the basis of both network related and
customer care related parameters

70.89%

66.39%

73.34%

52.74%

48.10%
18.22%
5.89%

78.66%

26.22%
9.46%

36.98%
15.11%

24.31%

33.83%

39.26%

39.90%

2012

December
'12

0.00%
2007

2008

2009

PGPM1013, Operations Management Academic Group 5

2010

2011

2. Project Methodology
2. Data Envelopment Analysis

1. Kano Model

Calculate Relative

Identification of
relevant I/p and o/p
variables

PGPM1013, Operations Management Academic Group 5

Methodology
Input 1
Network Service

Input Variables
Selection through
Kano Model

Parameters

Input 2
Customer Service
Parameters

Output

Data
Envelopment
Analysis

Subscriber Base
Revenue/ Quarter

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 Kano model.
PGPM1013, Operations Management Academic Group 5

Kano Model

Didnt know I
wanted it but I
like it.

The selection of Input Variables is


done though Kano Model.

Satisfaction
Satisfier
One Dimensional
Desired Quality

Delighters
Excited Quality
Service
Performance

Service
Performance
Dissatisfier
Must-be
Expected Quality

Cannot increase
my satisfaction, but
can decrease.

Selected
set of input
variables
for Network
Service
and
Customer
Service

A general survey was taken to


understand the customers
preferences regarding the
services provided by the Telecom
operators.
Those parameters which are
identified as Dis- Satisfiers are
selected as input parameters.

Dissatisfaction

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Kano Model Survey Outcome


Customer Requirement

TOTAL

GRADE

60

NETWORK PARAMETERS
Acc.Down Time

40

11

Call setup success rate

35

12

60

TCH Congestion

35

10

60

50

60

10

60

60

TCH Drop Rate


Connection with good
voice quality

30

20

Input Variables 1 (Network


Parameters)
Acc. Down Time
Call setup success rate
TCH Congestion
Call Drop rate

CUSTOMER CARE
Metering & Billing Credibility

35

10

Input Variables 2 (Customer


Parameters)
35
15
10
60
A
Accessibility of call center
Accessibility of call centre
5
35
12
8
60
E
Metering & Billing Credibility(Post
Paid)
% of calls answered
2
45
10
3
60
E
Metering & Billing Credibility
E-Expected, A-Attractive, R-Reverse, Q-Questionable, O-One dimensional, I - Indifferent
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Academic Group 5
% of calls answered within 60
Resolution of billing/charging
/validity complaints

3. Data Analysis
Operators serving Across India
Input & Output Variables
Network Parameters (Input
Variable)

Sample Data

Account Down Time


Call Setup success rate
TCH Congestion
Call drop rate

Customer Parameters (Input


Variable)

The operators serving across


India are :
1. Bharti Group
2. Aircel Group
3. Vodafone
4. Idea

Accessibility of Call center


Metering and billing credibility (PrePaid)
Metering and billing credibility (PostPaid)
% of calls answered in 60 seconds

Output Variables

Subscriber Base
Revenue Per Quarter
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Data Analysis
The above Zones along with operators
that excels in both customer service
and network Parameters

Performance on Network
Parameters

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Data Analysis

Performance on Customer Care


Parameters

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4. Target & Improvement Opportunities


Network Related Improvements - AIRTEL
DMU NO
CODE
2 AP2
6 ASM6
10 BH10
14 DLI14
18 GUJ18
22 HP22
26 HR26
30 J&K30
34 KOL34
38 KR38
42 KTK42
46 MBI46
50 MH50
54 MP54
58 NE58
62 OR62
66 PB66
70 RAJ70
74 TN74
78 UPE78
82 UPW82
86 WB86

STATE
EFFICIENCY
Andhra Pradesh
1.00000
Assam
0.19979
Bihar
1.00000
Delhi
0.55354
Gujarat
0.46887
Haryana
1.00000
Himachal Pradesh
0.10600
Jammu & Kashmir
0.12742
Kolkata
0.22183
Kerala
1.00000
Karnataka
0.80995
Mumbai
1.00000
Maharashtra
1.00000
Madhya Pradesh
0.98117
North East
0.13159
Orissa
0.35320
Punjab
0.41218
Rajasthan
0.67970
Tamil Nadu (incl.Chennai)
1.00000
UP(E)
0.76094
UP(W)
0.51654
West Bengal
0.49147

1.000
0.200
1.000
0.553
0.470
1.000
0.106
0.128
0.222
1.000
0.804
1.000
1.000
0.985
0.132
0.351
0.414
0.682
1.000
0.756
0.518
0.490

Constant
Increasing
Constant
Increasing
Increasing
Constant
Increasing
Increasing
Increasing
Constant
Increasing
Constant
Constant
Increasing
Increasing
Increasing
Increasing
Increasing
Constant
Increasing
Increasing
Increasing

1.000
0.157
1.000
0.450
0.062
1.000
0.066
0.076
0.102
1.000
0.016
1.000
1.000
0.067
0.034
0.007
0.261
0.682
1.000
0.027
0.018
0.189

BENCHMARKS
AP2
BH10
0.043
BH10
AP2
0.034
AP2
0.250
HP22
AP2
0.037
AP2
0.039
AP2
0.065
KR38
AP2
0.720
MBI46
MH50
KTK44
0.842
BH10
0.098
AP2
0.295
AP2
0.096
TN76
TN74
AP2
0.503
AP4
0.363
AP2
0.256

Customer Related Improvements - AIRTEL

TN76
MBI46
MH50

0.069
0.157

TN74
TN76

BH10
BH10
GUJ17

0.002
0.013
0.055

TN76
TN76
TN74

BH10

0.068

TN76

MH50
TN76
BH10
MH50

0.077

TN76

0.048
0.058

TN76
TN76

BH10
MH50
BH10

0.227
0.136
0.044

TN76
TN76
GUJ17

DMU NO DMU Name


2 AP2
6 ASM6
10 BH10
14 DLI14
18 GUJ18
22 HP22
26 HR26
30 J&K30
34 KOL34
38 KR38
42 KTK42
46 MBI46
50 MH50
54 MP54
58 NE58
62 OR62
66 PB66
70 RAJ70
74 TN74
78 UPE78
82 UPW82
86 WB86

CODE
Andhra Pradesh
Assam
Bihar
Delhi
Gujarat
Haryana
Himachal Pradesh
Jammu & Kashmir
Kolkata
Kerala
Karnataka
Mumbai
Maharashtra
Madhya Pradesh
North East
Orissa
Punjab
Rajasthan
Tamil Nadu (incl.Chennai)
UP(E)
UP(W)
West Bengal

STATE
0.857996837
0.20675019
1
0.435809467
0.448286247
0.17599705
0.094314148
0.109204268
0.171035935
0.622751407
0.757643078
0.179220682
0.964552911
1
0.143069781
0.353105072
0.320798325
0.681927174
0.63247506
0.717972022
0.501594987
0.436296983

EFFICIENCY
0.857996837 Increasing
0.202303949 Increasing
1 Constant
0.435809467 Increasing
0.45281439 Increasing
0.177774798 Increasing
0.094314148 Increasing
0.114592479 Increasing
0.171035935 Increasing
0.622751407 Increasing
0.757643078 Increasing
0.179220682 Increasing
0.964552911 Increasing
1 Constant
0.138503724 Increasing
0.353105072 Increasing
0.325883319 Increasing
0.681927174 Increasing
0.63247506 Increasing
0.721675247 Increasing
0.501594987 Increasing
0.436296983 Increasing

BENCHMARKS
0.857996837 TN76
0.202303949 BH10
1 BH10
0.435809467 TN76
0.004528144 BH10 0.448286247 TN76
0.03519941 AP4 0.033421662 MP54 0.109153726 TN76
0.094314148 TN76
0.114592479 TN76
0.171035935 TN76
0.155687852 AP4 0.467063555 TN76
0.757643078 TN76
0.179220682 TN76
0.192910582 AP4 0.192910582 MP54 0.578731746 TN76
1 MP54
0.138503724 BH10
0.353105072 BH10
0.325883319 TN76
0.681927174 TN76
0.63247506 TN76
0.721675247 TN76
0.100318997 AP4 0.195620799 MP54 0.20565519 TN76
0.436296983 TN76

Benchmarked operators and the relative level of improvement is calculated


Operators should study the feasibility of attaining the given target using a cost benefit analysis.
This improvement matrix is provided for all the operators.
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Managerial Implications
Need to substantially increase subscriber base & Revenue
Need 14% improvement in Call drop rate
Need 17% improvement in account down time (See TN)
Need Avg 10.8% improvement in metering credibility (Prepaid)
Clear leader in customer service parameters & congestion free
Need 12% improvement in call drop rate
Need 21% improvement in account down time
Company excels in call center access & call answering speed
Need 51% improvement in account down time
Need 22% improvement in congestion in network
Should also improve billing credibility
Fairly good on customer service parameters
Need 28% improvement in account down time
Need 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 & customer
parameters
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 priorities
for targeting

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