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 soon more used than voice and messaging in the UK.
“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, UK operators can expect to be ranked at a typical level or lower than typical. Some of the factors contributing to a high index are low churn within contract segments, long average contract duration, high utilisation of networks and a relative high use of e-channels and telesales. The factors contributing to a lower than typical index are high churn within non-contract segments, high costs for customer acquisition and – particularly – retention and a low growth rate.
“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.”
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