Operators: Get your own Efficiency Index!

If you've tried to communicate how efficient your company is to investors, analysts or to media, you also know how difficult it is to be understood. The language is far from universal. There's normally a lot of data around, but the message often gets lost in the details. Even for people within the company it can be challenging. Outsiders struggle to evaluate and compare what you say with what others say. 

The Efficiency Index is universally understood. By using it in your communication, you will express: "We care about efficiency" as well as "We are efficient".

Even if you initially provide your Efficiency Index as a service to investors, analysts and media, you will soon notice that it engages your own organisation to strive for higher efficiency. To support that, you will get detailed insight on the sub-indices that build up the Efficiency Index – and guidance on what you might do to improve efficiency further.

The investment needed from your side is very low. Very few non-reported data points are required. No data and no sub-indices will ever reach your competitors.

What's included? What's the price? 

Click to enlarge
  • Your Efficiency Index calculated – based on your input data checked to match the definitions
  • Insight into the sub-indices that build up your Efficiency Index
  • Guidance on how to improve your efficiency further
  • Right to use your Efficiency Index in your communication
  • A listing of your Efficiency Index at this website – or two options to keep the result anonymous

    Input data 

    Click to enlarge

    As shown in the Methodology section, the Efficiency Index is based partly on global data, partly on reported operator and regulator data and partly on non-reported operator data.

    This means that the workload for you as an operator to find the required data is very limited.

    Only 30 data points are required from you – see table below – and most likely you do already report 6-10 of them publicly.

    Click to enlarge

    To get the input data sheet with its definitions, please click here (only for mobile operators). 

    Data can be for the last 12 months up to any given point in time. You can run-through this annually, quarterly or monthly. 

    Even if data sharing is limited, it is still important to know that your input data (as well as your sub-indices) will be safe. None of it will ever be visible to competitors or outsiders – regardless of which price option you pick. 

    Will the Efficiency Index value be favourable?

    The Efficiency Index is designed so that the typical operator will get a value of 100. [Read more on methodology]

    For a number of operators – see here – Efficiency Indices have already been calculated and made public (if not anonymous). If you (or your authorities) report with good detail, you might even be amongst them with an indicative Efficiency Index. This can give you guidance on what your verified Efficiency Index value would be.

    The following characteristics will contribute to a high Efficiency Index:

    • High EBITDA per subscriber – subject to GDP
    • High EBITDA margin – subject to market share
    • Low subscriber acquisition cost – subject to contract/prepaid distribution, contract length, growth

    • Low subscriber retention cost – subject to binding period, contract churn

    • High use of e-channels and telesales in acquisition & retention – subject to ICT maturity

    • Low churn – subject to subscriber retention cost

    • High employee productivity – subject to OPEX, outsourcing helps 

    • Low Networks OPEX per site – subject to traffic load, network sharing helps
    • Low CAPEX – subject to growth

    • Low bad debt – subject to contract/prepaid distribution and bad debt situation in country 

    • High use of e-channels and IVR in customer service – subject to ICT maturity

    The list is not exhaustive. 

    Price and availability 

    The Efficiency Index is available to all mobile operators globally. The price per run-through has been set so that it does not represent any hurdle: from 2000 EUR per operator run-through – see What's included? What's the price? section above. 

    Please contact tefficient for more information.