Sec a-Bentley Telecom KPI

8/3/2019 Sec a-Bentley Telecom KPI

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KPIs for Telecom IndustrySample: Airtel India


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KPIs for Telecom Operators (Mobile

Network Operators)1. Subscribers (Subs)2. Usage

3. Revenue

4. Coverage and Spread

5. Market Share6. Incremental Performance

7. Operational Efficiency

8. Marketing

9. Quality

10. Green and Sustainability11. Financial & Valuation

12. Country Telecom Sector KPI

13. Telecom Tower

14. Spectrum Efficiency


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Subscribers (Subs)

1. Total Subs

2. Subs

Segmentation:

Prepaid (95%),

Post Paid (5%)

3. Churn per

month (3%)

4. Subscriber perEmployee

(13,000)


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Usage

1. Minutes of Usage (MOU)

2. MOU Segmentation: Prepaid (400) , Postpaid (1000), Aggregate (420)

3. MOU Segmentation: Incoming (220), Outgoing (200), Aggregate (420)

4. Number of Outgoing SMS Per Sub Per Month (30)

5. Minutes Carried Per Month (MON) (50 billion)6. % Airtime Capacity Utilization

7. Minutes Per Site

8. Number of Calls

9. Number of Calls per Subscriber

10. Average Call Duration

11. Roaming Minutes

12. International Roaming Minutes

13. International Roaming Minutes Segmentation: Incoming (64%),Outgoing (36%)


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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 Call4. Average Revenue Per Cell Site5. Average Revenue Per Employee6. 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%)


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Coverage and Spread

1. Towns Covered

2. Population Covered

3. Area Covered4. Globalization: Number of Countries

Operating Entity

5. % Traffic Within Own Mobile (55%)

6. Top 50% Users Revenue %

7. Top 50% Sites Revenue %


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Market Share

Subs Share

Revenue Market Share

Minutes Market Share


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Incremental Performance

1. Share of Net Adds Subs2. Share of Incremental Revenue3. Quarterly Sites Added

4. MRPU ( Marginal Revenue Per User)5. Growth1. Subs Growth2. Revenue Growth3. Services Revenue Growth

4. Services Revenue Acceleration5. ARPU Growth6. ARPM Growth

6. Subs Added / Retail Point of Presence (POP)


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Operational Efficiency-1

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 Sites5. Number of Employees6. MSC/ Subs7. MSC/ BTS8. BTS/ Subs (1000)

9. BTS/ Km210.Capex

1. Capex (% Revenue) (25%)2. Capex per Sub ($140)3. Capex per Minute ($0.07)4. Capex per Site ($100K )


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Operational Efficiency-21. Opex

1. Opex per Sub ( $3)2. Opex per Minute ($0.02)3. Opex per site ($3000)

2. Gross Capex ( Gross Fixed Assets + Incremental Capex)3. Opex as % Revenue (60%)4. Spectrum Charges as % Revenue (2%)

5. License Fee as % Revenue (6%)6. InterConnect Cost as % Revenue (16%)7. Business Operations Cost

1. Service Opex (Customer Care & Billing, Service Creation & Administration) as % Revenue(15%)

8. 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%)

9. Labor Cost (% Revenue) (5%)10.OSS/ BSS Ratio


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Marketing

1.Subscriber Acquisition Cost (SAC ) : DealerCommission, Terminal Subsidy, Sales,Marketing, Distribution

1.SAC as % Revenue (10%)2.SAC / net Addition (12$)

3.SAC / Minute (0.001$)

2.Sales Outlet1.Company Owned Sales Outlet

2.Number of Retail Outlets or Point of Presence(POP)


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Quality

1. Service Performance

1. RTT Delay (Ms) (800)2. Application Through Put ( kbps) (25 Kbps)3. Call Setup Time

2. Network Congestion1. Point of Interconnection (POI) Congestion (95%)

2. Standalone Dedicated Control Channel (SDCCH) Congestion (


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Green and Sustainability

1.Energy Consumption/ Sub (10 Kwh)

2.Co2 Emission/ Sub (6.8 Kg )


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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


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Country Telecom Sector KPI

1. Penetration2. Penetration ( >5Years Population)3. Penetration per House Hold4. Top 2 Players Share5. Top 2 Players Share Change

6. HHI Index7. Pricing Long Distance/ Local Price Ratio (1.5)8. Average F2M Interconnect Rate ($0.005 / Min)9. Average M2M Interconnect Rate10.Sim/ User ( Number of Subscribers/ Number of handset

Sales) (1.5)11.ARPU (PPP Adjusted)12.ARPU % of disposable income13.Mobile Revenue/ GDP (2%)14.Regional Roaming Usage (Roaming Travelers / Intra

Regional Travelers)


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Telecom Tower

1.Tenancy Ratio (2.0)

2.Average Rental per Tenant PerMonth ($600)


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Spectrum Efficiency

1. Busy Hour mErlangs carried per sq km per M Hz (4000)2. Busy Hour mErlangs per subscriber (40)3. Subs/Km2/MHz (100)4. Subs/Km2 (Urban) (2000)5. Spectrum per Operator (MHz) (5)


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Sample Operational KPIs Airtel IndiaParameters Unit

March

2010Dec 2009

Sept

2009June 2009

March

2009

ConsolidatedCustomers 000's 1,30,686 1,21,853 1,13,440 1,05,196 96,649

Employees No. 18,354 18,201 18,598 23,789 24,538

Mobile services

Customers 000's 1,27,619 1,18,864 1,10,511 1,02,368 93,923

Pre-paid customers as a % of total

customers % 95.8% 95.3% 95.2% 94.7% 94.2%Post-paid customers as a % of total

customers % 4.2% 4.7% 4.8% 5.3% 5.8%

Bharti's mobile subscribers market

share % 21.8% 22.6% 23.5% 24.0% 24.0%

Average Revenue Per User (ARPU) Rs. 220 230 252 278 305

Average Rate Per Minute (ARPM) Rs 0.47 0.52 0.56 0.58 0.63

Average Minutes of Use Per User Minutes 468 446 450 478 485

Post-paid Voluntary Churn % 1.0% 1.0% 0.9% 1.2% 1.2%

Post-paid Company Initiated Churn % 0.5% 0.9% 1.0% 1.3% 1.4%

Pre- paid Churn % 5.9% 6.5% 4.6% 3.5% 3.2%

SMS Revenue as a % of Total Mobile

Revenues % 5.7% 6.0% 4.9% 4.3% 3.7%

Employees No. 7,969 7,185 7,322 7,646 7,832


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Sec a-Bentley Telecom KPI

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