Telcom Industry - Key KPI's

  
1. Country telecoms sector (13 KPIs)

Mobile penetration
Tele-density
Penetration per household
Mobile market share index (MMSI)
Subscribers per km2
Prepaid relative penetration
Number of SIM cards per user
Competition intensity index (HHI)
Top 2 players share
Mobile revenue per GDP
Market ARPU
Data penetration
Pricing ratios (termination rate, In-out ratio)


2.Marketing and Sales (38  KPIs)

Marketing and Sales metrics are split into 6 categories: subscribers, market position, brand performance, usage, revenue, distribution.

Metrics concerning Subscribers
Revenue generating subscribers (RGS)
Gross connections
Net additions
Churn rate (monthly or annual)
Rotational churn rate
Customer lifetime (in months or in years)

Market position metrics
Market share (subscribers)
Value share (revenue)
Share of talk (usage)
Relative market share
Marginal market share

Brand performance metrics
Top of mind awareness
Total spontaneous awareness
Aided awareness
Share of voice
Brand preference
Brand affinity
Brand health score
Brand index

Customer Usage metrics
Minutes Of Use per User (MOU per User)
Number of calls per user
Average call length
Sphere of influence (SOI)
Sphere of reception (SOR)
Sphere of activity (SOA)
Return call index
Average call distance
Call ratio

Metrics concerning Revenue
Average Revenue Per User (ARPU/ASPU)
Average Revenue Per Minute (ARPM)
Average Revenue Per Cell (ARPC)
Marginal ARPU (or ASPU)
Marginal Revenue Per Minute

Sales and Distribution metrics
Share in shop handling
Numeric (and weighted) purchasing
Stocks volume
Stock cover days
Handling stock (numeric or weighted)




3.Quality Of Service (33 KPIs)

Metrics pertaining to Quality Of Service can be split into 3 categories: network, call center, distribution.

Network metrics
Call setup time
Call setup success rate (CSSR)
SDCCH congestion
Congestion rate (all-hours and busy-hours)
Radio network utilization (all-hours and busy-hours)
% cells > 2% congestion
Call drop rate
Half-rate utilization
Point of interconnection congestion
Prepaid service success rate
BTSs accumulation downtime
Handover success rate
SMS delivery success rate
International link availability
Critical link availability
International link availability
Average Erlang per subscriber
Complaints on coverage per 1,000 subscribers

Call Center metrics
Average call handling time (CHT)
Average delay to answer (ADA)
First call resolution
% service level
Calls per subscriber per month
Call abandonment rate
Conversion rate
Occupancy
IVR completion rate
Agent utilization
Average subscribers/Call center employee

Sales and Distribution
Out-of-stock (numerical and weighted)
Net numeric distribution
Stock cover days
Dealer satisfaction index



4.Operational Efficiency (36 KPIs)

Metrics related to operational efficiency measure the quality of a business’s receivables and how efficiently it uses and controls its financial, material and human resources. This set of metrics is very large and can be split into margin ratios, revenue-based ratios, unit-based ratios and billing metrics.

Margin ratios
Average Gross Profit Per User (AGPPU)
Contribution Margin Per User (CMPU)
Average Operational Margin Per User (AOMPU)
Average Operational Margin Per Minute (AOMPM)

Revenue-based ratios
Cost Of Sales/Revenue
OPEX/Revenue
CAPEX/Sales
Commissions (distribution)/Revenue
Business operations cost/Revenue
Network operating cost/Revenue
Marketing OPEX/Revenue
Interconnect cost/Revenue
Subscriber acquisition cost/Revenue
Labor cost/Revenue

Unit-based ratios
Cost of sales/average RGS
Cost of sales/billed minutes
OPEX/average RGS
OPEX/billed minutes
OPEX/number of sites
CAPEX/average RGS
CAPEX/billed minutes
CAPEX/number of sites
Marketing OPEX/Gross connections
Marketing OPEX/Net additions
Subscriber acquisition cost/Gross connections
Subscriber acquisition cost/billed minutes
Maintenance cost/number of BTS
Rent and utilities/number of BTS
Mobile switching centers/average RGS
Base transceiver stations/average RGS
Base transceiver stations/km2

Billing ratios
Number of days sales outstanding
Bad debt (% unpaid and % of revenue)
Cost to deal with errors (billing)
Cost of collecting revenue
Ratio of bills collected before due date

NB: For the metrics concerning Human Resources, please refer to the post: Top 100 KPIs for Human Resources.



5.Finance and Valuation (18 KPIs)

Metrics pertaining to Finance and Valuation can be split into 3 categories: return and profitability, solvency and liquidity, valuation.

Return and profitability
Gross Profit margin
EBITDA margin
PAT margin
Return-On-Invested Capital (ROIC)
Return-On-Assets (ROA)
Return-On-Equity (ROE)

Solvency and liquidity
Net gearing ratio
Net debt/EBITDA
Invest coverage ratio

Valuation
Enterprise value/EBITDA
EV/(EBITDA – Tax)
EV/Revenue
EV/Subscribers
Earnings per share (EPS)
Price earnings ratio (P/E)
Price-to-sales ratio (P/S)
Free cash flow/Revenue
Weighted Average Cost of Capital (WACC)