Abstract
With the fast development of the mobile internet in recent years, the new generation mobile communication networks as the basic supporting have received widespread attentions. During the upgrading period of new generation networks, the telecom operators need to grasp the network investment performance, which is one of the key factors for deploying the new generation networks and arranging new services effectively. In this paper, first, we propose a method based on the dynamic DEA model and the sensitivity analysis to measure the network investment performance of telecom operators, which gives the managers and researchers insight into the changing process of the key influence factors on the investment performance. Then, we build the input-output indicators system of the DEA model from five dimensions, such as INVESTMENT, SUPPLY, ADOPTION, USAGE, and REVENUE, for a more complete and valid characterization to the network investment performance. At last, we apply the proposed method to conduct an empirical research on the operational data of one Chinese telecom operator from 2013 to 2015, which has been the initial launch phase of 4G network. Based on the result, we develop effective investment strategies for the upgrading period of networks, which also gives guidelines for the investment of 5G and other new generation networks in the future.
Highlights
IntroductionThe new generation mobile communication networks (hereinafter referred to as “new generation networks”), such as 3G, 4G, and 5G, play an important role in the advancement of mobile internet and have received a vital concern [1,2,3]
The new generation mobile communication networks, such as 3G, 4G, and 5G, play an important role in the advancement of mobile internet and have received a vital concern [1,2,3]
We propose a method based on the dynamic data envelopment analysis (DEA) model and the sensitivity analysis to measure the network investment performance of telecom operators
Summary
The new generation mobile communication networks (hereinafter referred to as “new generation networks”), such as 3G, 4G, and 5G, play an important role in the advancement of mobile internet and have received a vital concern [1,2,3]. Structural equation modeling (SEM) is a commonly used performance measurement method in telecommunication [8, 9]. This method has been used only for analyzing the static data in previous studies. In this case, data envelopment analysis (DEA) model appears to have a significantly advantage over the other performance measurement methods from the point of efficiency [10,11,12]. We propose a method based on the dynamic DEA model and the sensitivity analysis to measure the network investment performance of telecom operators. We make an empirical research to dynamically analyze 4G investment of one Chinese telecom operator, and the practical investment strategies during the upgrading period of the networks can be summarized, which can give investment guidelines for 5G and other new generation networks in the future
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