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Comparing the operational efficiency of the main European telecommunications organizations: A quantitative analysis

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  • Pentzaropoulos, G. C.
  • Giokas, D. I.

Abstract

There are today many operators competing within the European telecommunications market. For these operators, efficiency should be considered as a key element for achieving greater revenue and enhancing market position. In this paper, comparison is made of the main European public telecommunications organizations (PTOs) in terms of their operational efficiency using data envelopment analysis, a well-known quantitative technique from operational research. The analysis is based on data provided in the edition (Communications Outlook, 1999, OECD Publication Service, Paris). The main conclusion is that full operational efficiency can equally be achieved by PTOs with large revenues as well as by others with medium and smaller revenues. Also notable is the presence of certain PTOs with full efficiency ratings which are considered here as models or benchmarks for the less efficient organizations. Finally, some implications of the findings for telecommunications management are examined at the end of this paper.

Suggested Citation

  • Pentzaropoulos, G. C. & Giokas, D. I., 2002. "Comparing the operational efficiency of the main European telecommunications organizations: A quantitative analysis," Telecommunications Policy, Elsevier, vol. 26(11), pages 595-606, December.
    • Handle: RePEc:eee:telpol:v:26:y:2002:i:11:p:595-606
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    Cited by:

    1. Moreno, Plácido & Lozano, Sebastián & Gutiérrez, Ester, 2013. "Dynamic performance analysis of U.S. wireline telecommunication companies," Telecommunications Policy, Elsevier, vol. 37(6), pages 469-482.
    2. Chun‐Hsiung Liao & Diana B. González, 2009. "Comparing Operational Efficiency of Mobile Operators in Brazil, Russia, India and China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 17(5), pages 104-120, September.
    3. Ho, Dong-huyn & Lööf, Hans, 2009. "Creating Innovations, Productivity and Growth - the efficiency of Icelandic firms," Working Paper Series in Economics and Institutions of Innovation 162, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    4. Oh, Dong-Hyun & Lööf, Hans & Heshmati, Almas, 2009. "The Icelandic Economy: a victim of the financial crisis or simply inefficient?," Working Paper Series in Economics and Institutions of Innovation 199, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    5. Eleni Laitsou & Michail Kiriakidis & Antonis Kargas & Dimitris Varoutas, 2017. "Economies of scale, cost minimization and productivity in telecom markets under economic crisis: evidence from Greece," Netnomics, Springer, vol. 18(2), pages 169-182, December.
    6. Djily Diagne, 2006. "Mesure de l'efficience technique dans le secteur de l'éducation: une application de la méthode DEA," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 142(II), pages 231-262, June.
    7. Liao, Chun-Hsiung & Lin, Hsing-Yung, 2011. "Measuring operational efficiency of mobile operators in Japan and Korea," Japan and the World Economy, Elsevier, vol. 23(1), pages 48-57, January.
    8. Michel Berne & Gérard Pogorel, 2004. "Privatization Experiences in France," CESifo Working Paper Series 1195, CESifo.
    9. Bielov, Constantine & Mitomo, Hitoshi & Hämmäinen, Heikki, 2022. "Efficiency frontier of OECD MNOs: Multinational vs Domestic," Telecommunications Policy, Elsevier, vol. 46(5).
    10. Lourdes Torres & Patricia Bachiller, 2013. "Efficiency of telecommunications companies in European countries," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 17(4), pages 863-886, November.
    11. Tsai, Hsiang-Chih & Chen, Chun-Mei & Tzeng, Gwo-Hshiung, 2006. "The comparative productivity efficiency for global telecoms," International Journal of Production Economics, Elsevier, vol. 103(2), pages 509-526, October.
    12. Palcic, Dónal & Reeves, Eoin, 2013. "Private equity leveraged buyouts in European telecoms: The case of Eircom," Telecommunications Policy, Elsevier, vol. 37(6), pages 573-582.
    13. Bruno, Clementina & Manello, Alessandro, 2015. "Benchmarking and effects of reforms in the fixed telecommunications industry: A DDF approach," Telecommunications Policy, Elsevier, vol. 39(2), pages 127-139.
    14. Reddy, Manohar Bayyapu & Bielov, Constantine & Finley, Benjamin & Kilkki, Kalevi & Mitomo, Hitoshi, 2019. "Efficiency of Mobile Network Operators from a Data Service Perspective," 30th European Regional ITS Conference, Helsinki 2019 205208, International Telecommunications Society (ITS).

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