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Productivity Analysis of the Telecommunication Sector in India

Keywords: Productivity analysis , Efficiency Measurement , Total Factor Productivity , Data Envelopment Analysis , CCR Model , BCC Model

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Abstract:

This paper applies the data envelopment analysis (DEA) approach to measure the Productivity performance of India’s telecommunications sector. This study applies a data envelopment analysis (DEA) approach to measure the magnitude of performance differences between leading telecom operators in terms of their marketability and Profitability. It compares the financial valuations and relative productivity efficiencies of the leading global telecoms. Empirical results indicate that none of the telecoms with high valuations are highly efficient in terms of DEA, and that wireless operators are more efficient than full-service telecoms in terms of profitability and marketability. The results are expected to be utilized as benchmarking strategies for wireless and full-service telecommunications to be equipped with competitive advantages.

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