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Efficiency Perspective on Telecom Mobile Data Traffic

Author

Listed:
  • Riko Hendrawan

    (Telkom University, Jl. Gegerkalong Hilir No. 47, 40251, Bandung, Indonesia Author-2-Name: Kristian WA Nugroho Author-2-Workplace-Name: Faculty Economic and Business, Telkom University, Indonesia Author-3-Name: Gayuh T Permana Author-3-Workplace-Name: Faculty Economic and Business, Telkom University, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

Objective - The global industry is transforming into a digital world, evidenced by digital transformation performed by almost all of the industry sectors. One of the digital drivers is the support of connectivity provided by the telecommunication industry. The increasing mobile subscribers, along with the growth of mobile data traffic, is the sign of digital transformation itself. However, the rise of OTT (Over the Top) service providers tends to acquire the revenue share of the current telecom industry, seeing the trend of voice and SMS revenue that projected to decline.Methodology/Technique - This research is intended to measure the impact of increasing mobile data traffic that mostly caused by OTT services to telecom efficiency. The efficiency measurement & analysis were performed using the Stochastic Frontier Approach (SFA) & Data Envelopment Analysis (DEA) method.Findings - By using the SFA method, Maxis (Malaysia) got the highest efficiency score (0.98), followed by AIS (Thailand) with efficiency score 0.94 and Indosat Ooredoo (Indonesia) as the least efficient telecom provider (0.5). However, by using the DEA method, TLKM (Indonesia) got the highest efficient (0.98), and Celcom Axiata (Malaysia) was the least efficient (0.73/0.8).Novelty - The compelling results of this study are variable total asset variable had a significant negative impact on the efficiency score, and the variable of mobile data traffic was not significantly impacting the efficiency value (t-Ratio 0.71).Type of Paper - Empirical.

Suggested Citation

  • Riko Hendrawan, 2020. "Efficiency Perspective on Telecom Mobile Data Traffic," GATR Journals jber188, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jber188
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    References listed on IDEAS

    as
    1. Berger, Allen N. & Humphrey, David B., 1997. "Efficiency of financial institutions: International survey and directions for future research," European Journal of Operational Research, Elsevier, vol. 98(2), pages 175-212, April.
    2. Berger, Allen N. & Bonaccorsi di Patti, Emilia, 2006. "Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry," Journal of Banking & Finance, Elsevier, vol. 30(4), pages 1065-1102, April.
    3. Riko Hendrawan, 2018. "Telecommunication Sector Reform in Southeast Asia: A New Rationality," GATR Journals gjbssr522, Global Academy of Training and Research (GATR) Enterprise.
    4. Riko Hendrawan, 2019. "How Impactful is Telecom Efficiency to Company Stock Value?," GATR Journals jfbr157, Global Academy of Training and Research (GATR) Enterprise.
    5. Riko Hendrawan & Gayuh T Permana & Kristian WA Nugroho, 2019. "Efficiency analysis of telecommunications companies in Southeast Asia using Stochastic Frontier Analysis (SFA) method," Jurnal Siasat Bisnis, Management Development Centre (MDC) Department of Management, Faculty of Business and Economics Universitas Islam Indonesia, vol. 23(2), pages 104-112.
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    Cited by:

    1. Rafael Ravina-Ripoll & María-José Foncubierta-Rodríguez & Eduardo Ahumada-Tello & Luis Bayardo Tobar-Pesantez, 2021. "Does Entrepreneurship Make You Happier? A Comparative Analysis between Entrepreneurs and Wage Earners," Sustainability, MDPI, vol. 13(18), pages 1-19, September.

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    More about this item

    Keywords

    Telecom Operators; Efficiency; Mobile Data Traffic;
    All these keywords.

    JEL classification:

    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M15 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - IT Management
    • M19 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Other

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