Data service efficiency of mobile network operators using data envelopment analysis

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Journal ISSN

Volume Title

Sähkötekniikan korkeakoulu | Master's thesis

Authors

Date

2019-10-21

Department

Major/Subject

Communications Engineering

Mcode

ELEC3029

Degree programme

CCIS - Master’s Programme in Computer, Communication and Information Sciences (TS2013)

Language

en

Pages

55+9

Series

Abstract

The ubiquity of mobile devices such as smartphones, tablets, laptops, and mobile routers drive unprecedented mobile data traffic year after year. However, the actual mean mobile data usage (volume) per subscriber varies significantly between Mobile Network Operators (MNOs) and countries. Understanding these differences is important for both MNO's evolving business models and telecom regulation in general. A potential driver for these differences is MNO efficiency in delivering mobile data services. Where efficiency is measured relative to non-financial inputs (subscribers and spectrum) and output (total data volume). Given this context, this study estimates and analyzes the efficiency of data service delivery (data usage by subscribers) of 94 mobile operators from 28 countries by using the Data Envelopment Analysis (DEA) method. The study demonstrates that many countries have a single highly efficient MNO due to that MNO's effort to gain market share. While in a few other countries all MNOs are high efficiency likely due to country-level initiatives. Furthermore, major economic disparities between countries highly influence country-level efficiency scores. Finally, a case study between Finland and India highlights their similar high-efficiency scores but very dissimilar data service markets.

Description

Supervisor

Hämmäinen, Heikki

Thesis advisor

Finley, Benjamin

Keywords

mobile network operator, data volume, data envelopment analysis, efficiency

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Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-201910275802

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[dipl] Sähkötekniikan korkeakoulu / ELEC