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

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.