Efficiency Perspective on Telecom Mobile Data Traffic

Riko Hendrawan ()
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Riko Hendrawan: Telkom University, Jl. Gegerkalong Hilir No. 47, 40251, Bandung, Indonesia Author-2-Name: Kristian WA Nugroho Author-2-Workplace-Name: Faculty Economic and Business, Telkom University, Indonesia Author-3-Name: Gayuh T Permana Author-3-Workplace-Name: Faculty Economic and Business, Telkom University, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:

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Abstract: Objective - The global industry is transforming into a digital world, evidenced by digital transformation performed by almost all of the industry sectors. One of the digital drivers is the support of connectivity provided by the telecommunication industry. The increasing mobile subscribers, along with the growth of mobile data traffic, is the sign of digital transformation itself. However, the rise of OTT (Over the Top) service providers tends to acquire the revenue share of the current telecom industry, seeing the trend of voice and SMS revenue that projected to decline.Methodology/Technique - This research is intended to measure the impact of increasing mobile data traffic that mostly caused by OTT services to telecom efficiency. The efficiency measurement & analysis were performed using the Stochastic Frontier Approach (SFA) & Data Envelopment Analysis (DEA) method.Findings - By using the SFA method, Maxis (Malaysia) got the highest efficiency score (0.98), followed by AIS (Thailand) with efficiency score 0.94 and Indosat Ooredoo (Indonesia) as the least efficient telecom provider (0.5). However, by using the DEA method, TLKM (Indonesia) got the highest efficient (0.98), and Celcom Axiata (Malaysia) was the least efficient (0.73/0.8).Novelty - The compelling results of this study are variable total asset variable had a significant negative impact on the efficiency score, and the variable of mobile data traffic was not significantly impacting the efficiency value (t-Ratio 0.71).Type of Paper - Empirical.

Keywords: Telecom Operators; Efficiency; Mobile Data Traffic (search for similar items in EconPapers)
JEL-codes: M10 M15 M19 (search for similar items in EconPapers)
Pages: 7
Date: 2020-03-30
New Economics Papers: this item is included in nep-eff, nep-ict and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published inJournal of Business and Economics Review, Volume 5, Issue 1

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