Assessing the Performance of Telecommunication Industry in India: A Data Envelopment Analysis
Seema Sharma, Kirankumar Momaya, K. Manohar
Rapid growth of telecommunications in India has been creating opportunities for many players from Asia, Europe and other parts of world. Relative assessment of efficiencies can be used to enhance productivity and competitiveness. In this study an attempt is made to evaluate competitiveness of the telecom industry in India focusing on the efficiency. Input oriented data envelopment analysis is used to measure the relative technical and scale efficiencies of 10 service providers. Further, using output oriented model, the efficiency analysis is extended to 23 service circle areas. From the analysis performed on service providers the technically and scale efficient firms were identified. Technical and scale efficiency were assessed at circle level also. The findings confirm some assumptions and hint at several competitiveness implications for leadership in firms and government.