100 KPIs for Mobile Telecom Operators

Telecommunication service industry around the world is facing significant challe

nges 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 othe
r hand, promising markets with explosive demand provide vast opportunities for t
he players.
Today, telecommunication industry is no longer technology centric, but it revolv
es more around customer relationship. Customer satisfaction and marketing intell
igence with innovative promotional schemes and advanced technology are the drive
rs of business. Also, cutthroat competition and mammoth investments in the telec
om industry churn away profit margins and make intelligent decision making criti
cal. And how do CXOs make decisions? Through KPI monitoring, control and analysi
s.
As in the rest of the industries, a performance indicator or key performance ind
icator (KPI) is a measure of performance. Such measures are commonly used to hel
p an organization define and evaluate how successful it is, typically in terms o
f making progress towards its long-term organizational goals.
KPIs can be specified by answering the question, What is really important to diff
erent stakeholders?. KPIs may be monitored using Business Intelligence techniques
to assess the present state of the business and to assist in prescribing a cour
se of action. The act of monitoring KPIs in real-time is known as business activ
ity monitoring (BAM). KPIs are frequently used to value difficult to measure activ
ities such as the benefits of leadership development, engagement, service, and s
atisfaction.
My friend Pareek has just sent me a set of 100 KPIs for telecom operators. He in
cludes some illustrative figures in the brackets that show indicative values for
an Asian Operator we will not disclose. Hope it helps.
100 KPIs for Telecom Operators (Mobile Network Operators)
Subscribers (Subs)
Total Subs
Subs Segmentation: Prepaid (95%), Post Paid (5%)
Churn per month (3%)
Subscriber per Employee (13,000)
Usage
Minutes of Usage (MOU)
MOU Segmentation: Prepaid (400) , Postpaid (1000), Aggregate (420)
MOU Segmentation: Incoming (220), Outgoing (200), Aggregate (420)
Number of Outgoing SMS Per Sub Per Month (30)
Minutes Carried Per Month (MON) (50 billion)
% Airtime Capacity Utilization
Minutes Per Site
Number of Calls
Number of Calls per Subscriber
Average Call Duration
Roaming Minutes
International Roaming Minutes
International Roaming Minutes Segmentation: Incoming (64%), Outgoing (36%)
Revenue
ARPU ( Average Revenue Per User)
ARPU Segmentation: Voice ($4), Data ($8), Aggregate ($4)
ARPU Segmentation: Prepaid ($3), Postpaid ($11), Blended ( $4)
ARPM (Average Revenue Per Minute)
ARPM Segmentation: Prepaid ($0.15), Postpaid ($0.022), Blended ($0.02 )
Average Revenue Per Call
Average Revenue Per Cell Site
Average Revenue Per Employee
Revenue Breakup (%)
Access: Connection, Subscription (15%)
Wireless Voice (55%)
Data (5%)
Internet (5%)
Interconnect (10%)
Roaming (10%), International Roaming Revenue (1%)
International Roaming Revenue Segmentation: Postpaid (99%)
Coverage and Spread
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
Subs Share
Revenue Market Share
Minutes Market Share
Incremental Performance
Share of Net Adds Subs
Share of Incremental Revenue
Quarterly Sites Added
MRPU ( Marginal Revenue Per User)
Growth
Subs Growth
Revenue Growth
Services Revenue Growth
Services Revenue Acceleration
ARPU Growth
ARPM Growth
Subs Added / Retail Point of Presence (POP)
Operational Efficiency
Average Margin Per User (AMPU)
AMPU Segmentation: Prepaid (More),Postpaid (Less), Blended()
Employee Cost / Town Covered ($2500)
Number of BTS Sites
Number of MSC Sites
Number of Employees
MSC/ Subs
MSC/ BTS
BTS/ Subs (1000)
BTS/ Km2
Capex
Capex (% Revenue) (25%)
Capex per Sub ($140)
Capex per Minute ($0.07)
Capex per Site ($100K )
Opex
Opex per Sub ( $3)
Opex per Minute ($0.02)
Opex per site ($3000)
Gross Capex ( Gross Fixed Assets + Incremental Capex)
Opex as % Revenue (60%)
Spectrum Charges as % Revenue (2%)
License Fee as % Revenue (6%)
InterConnect Cost as % Revenue (16%)
Business Operations Cost
Service Opex (Customer Care & Billing, Service Creation & Administration
) as % Revenue (15%)
Network Operating Cost as % Revenue (16%)
Rental as % Network Opex (15%)
Power & Fuel as % Network Opex (25%)
Repair & Maintenance as %Network Opex (20%)
Transmission as % Network Opex (15%)
Core Network as % Network Opex (10%)
Hardware and Software as % Network Opex (10%)
Labor Cost (% Revenue) (5%)
OSS/ BSS Ratio
Marketing
Subscriber Acquisition Cost (SAC ) : Dealer Commission, Terminal Subsidy, S
ales, Marketing, Distribution
SAC as % Revenue (10%)
SAC / net Addition (12$)
SAC / Minute (0.001$)
Sales Outlet
Company Owned Sales Outlet
Number of Retail Outlets or Point of Presence (POP)
Quality
Service Performance
RTT Delay (Ms) (800)
Application Through Put ( kbps) (25 Kbps)
Call Setup Time
Network Congestion
Point of Interconnection (POI) Congestion (<0.5%)
Connection Establishment (Accessibility)
Call Setup Success Rate (CSSR) (>95%)
Standalone Dedicated Control Channel (SDCCH) Congestion (<1%)
TDH Congestion (<2%)
Connection Maintenance (Retainability)
Call Drop Rate (CDR) (< 2%)
Worst Affected Cells for Call Drop Rate (<5%)
Connection with Good voice quality (>95%)
Service Quality
Prepaid Prepaid Service Success Rate
Number Portability Drop Rate
Handover Success Rate
Network Availability
BTSs Accumulated downtime (<2%)
Worst Affected BTSs due to downtime (<2%)
Green and Sustainability
Energy Consumption/ Sub (10 Kwh)
Co2 Emission/ Sub (6.8 Kg )
Financial & Valuation
Gearing ( net Debt/ EBIDTA) (2.0)
EBIDTA % Revenue (30%)
PAT % Revenue (10%)
ROIC (EBIDTA/ Gross Capex) (20%)
FCF (EBIDTA Capex Tax) % Revenue (5%)
Capital Productivity (Revenue / Gross Capex) (67%)
EV / EBIDTA (8.0)
EV/ Sales (3.0)
EV/ Subscribers ($200)
EV / GCI (1.0)
P/E
Country Telecom Sector KPI
Penetration
Penetration ( >5Years Population)
Penetration per House Hold
Top 2 Players Share
Top 2 Players Share Change
HHI Index
Pricing Long Distance/ Local Price Ratio (1.5)
Average F2M Interconnect Rate ($0.005 / Min)
Average M2M Interconnect Rate
Sim/ User ( Number of Subscribers/ Number of handset Sales) (1.5)
ARPU (PPP Adjusted)
ARPU % of disposable income
Mobile Revenue/ GDP (2%)
Regional Roaming Usage (Roaming Travelers / Intra Regional Travelers)
Telecom Tower
Tenancy Ratio (2.0)
Average Rental per Tenant Per Month ($600)
Spectrum Efficiency
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)