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


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


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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    References listed on IDEAS

    1. Madden, Gary & Savage, Scott J. & Coble-Neal, Grant & Bloxham, Paul, 2000. "Advanced communications policy and adoption in rural Western Australia," Telecommunications Policy, Elsevier, vol. 24(4), pages 291-304, May.
    2. Lentz, R. G. & Oden, Michael D., 2001. "Digital divide or digital opportunity in the Mississippi Delta region of the US," Telecommunications Policy, Elsevier, vol. 25(5), pages 291-313, June.
    3. Strover, Sharon, 2001. "Rural internet connectivity," Telecommunications Policy, Elsevier, vol. 25(5), pages 331-347, June.
    4. Parker, Edwin B., 2000. "Closing the digital divide in rural America," Telecommunications Policy, Elsevier, vol. 24(4), pages 281-290, May.
    5. Ramírez, Ricardo, 2001. "A model for rural and remote information and communication technologies: a Canadian exploration," Telecommunications Policy, Elsevier, vol. 25(5), pages 315-330, June.
    6. McElhinney, Stephen, 2001. "Telecommunications liberalisation and the quest for universal service in Australia," Telecommunications Policy, Elsevier, vol. 25(4), pages 233-248, May.
    7. Gary Madden & Scott Savage & Michael Simpson, 1998. "Asia-Pacific Telecommunications USOs: Current Practice and Future Options," Prometheus, Taylor & Francis Journals, vol. 16(4), pages 485-498.
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    Cited by:

    1. 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.
    2. 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.
    3. Dong-hyun Oh & Hans Loof & Almas Heshmati, 2009. "The Icelandic Economy: A Victim of the Financial Crisis or Simply Inefficient?," TEMEP Discussion Papers 200916, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Sep 2009.
    4. 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.
    5. repec:kap:netnom:v:18:y:2017:i:2:d:10.1007_s11066-017-9121-y is not listed on IDEAS
    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 Group Munich.
    9. 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.
    10. 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.


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