Telecom operator revenue is under pressure. Increased competition leads to decreased prices. At the same time, smartphones have transformed the business of operators: Data services are now much more used than voice and messaging. Sweden and Finland are good examples*.
“Investors and analysts are requiring operators to improve their efficiency”, says Fredrik Jungermann, the inventor of the Efficiency Index. “They want operators to get more out of less.”
But many operators are already very efficient. And many are improving their efficiency. The problem is to communicate this to investors and analysts.
The new Efficiency Index compares the efficiency of telecom operators – using one, indexed, figure. It is simple to communicate – and simple to understand and compare.
Based on indicative data, Finnish and Swedish operators can expect to be top ranked. High customer loyalty, a high share of customers being on contract, productive organisations, cost efficient networks and high use of e-channels are some of the explanatory factors.
“We’re now signing up operators to the Efficiency Index”, says Fredrik Jungermann. “Follow the development of the operator top list at www.efficiency-index.com.”
*) The average Swedish mobile customer used 644 Mbytes of data, 148 minutes and 119 SMS per month in 2011. The average Finnish mobile customers used 588 Mbytes of data, 153 minutes and 43 SMS per month in 2011. Source: tefficient calculations www.tefficient.com/.cm4all/iproc.php/tefficient%20public%20efficiency%20analysis%206.pdf?cdp=a based on data from Post- och telestyrelsen and Ficora.
About Efficiency Index
Efficiency Index provides operators, investors and analysts with a reliable comparison of the efficiency of telecom operators around the world. Efficiency Index is based on thorough research – collecting, analysing and correlating data from more than 400 local telecom operators globally – combining it with data from telecom regulators, governments and international institutions like IMF, ITU and UN. The Efficiency Index is invented and managed by tefficient. Read more at www.efficiency-index.com
tefficient is an international efficiency specialist providing telecom operators and -suppliers with analysis, benchmarks, consulting and coaching. Read more at www.tefficient.com