Abstract
Telecommunication is the lifeline of society. Telecom sectors are plays an important role for economic and commercial growth for any country. In the last two years, there has been an exponential growth in cellular mobile services in India. At present the mobile subscriber base is increasing at the rate of about 2.5–3 million subscribers per month. However the efficiency and quality of service would suffer if efficient interconnections were not enforced in a timely manner. There is still great diversity in the relative performance of various service providers, which is matter of concern to the telecom planner in this country. This paper employs the method of Data Envelopment Analysis (DEA) to compare the relative efficiency of mobile service providers in India. The identification of the strongest and the weakest service providers could be very useful in improving their efficiency and performance. Mathematically, DEA determines the best weights for each input and output for a particular unit under study so as to maximize its relative efficiency. The results may be insightful to the telecom policy planner as it identifies the inefficient service providers, who can improve the performance by making the efficient providers as their role model. The paper also identifies some generic insights from this study.
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