Telecommunication & ICT Sector Performance Indicators - LIRNEasia

Telecommunication & ICT
Sector Performance Indicators
A Handbook
for
National Regulatory Authorities
Compiled by
http://www.lirneasia.net

Introduction
Over the past two decades telecommunications have grown to be of paramount importance, both
at a national and international level. Having identified this phenomenon, local governments are
increasingly enacting legislation and policies that would further facilitate the adoption of emerging
technologies. Most nations have opted to change their telecom sectors to more liberalized or
deregulated market structures, in order to survive the pace of globalization that is being driven by
new ICT technologies. Due to this rapid move towards a more integrated Information Society, the
availability of internationally competitive telecommunication services is vital.
Importance of Standardized Data
As the telecommunication sector is now considered a key component of economic growth, there
is immense value in the data collected on different telecom indicators. Standardized data
highlights ICT development and access both in a national and regional context. Time
comparisons of country data provide insights into the effects of regulatory actions and market
changes on a nation’s ICT growth. Specific data, such as an operator’s market share based on
its subscriber base, can be used to formulate policy or to determine regulation. As such,
comparable, standardized data on a series of ICT indicators is of utmost importance to regulators,
policy makers and operators in any country.
Definitions by International Organizations
Many countries, especially those that are members of the International Telecommunications
Union (ITU) regularly collect and report (often to the ITU) data against a number of ICT indicators.
However, proper data comparisons are made difficult at times, due to the dearth of commonly
accepted standards and definitions for each indicator. Having recognized the need for
comparable data, the ITU is continuously engaged in establishing standards and definitions for
each indicator. The ITU though, is not the only international organization that collects, reports,
uses and disseminates indicator data. While the ITU’s focus is predominantly telecommunication
indicators, the ongoing interest in ICT for development has led to an increased demand for a
broader range of ICT indicators. Therefore, a number of organizations (ITU, OECD, UNCTAD,
UNESCO Institute for Statistics, UN ICT Task Force, the World Bank, and UNESCAP among
others) have formed the Partnership for Measuring ICT for Development, and are undertaking an
on-going initiative to develop a series of ICT indicators, while simultaneously preparing
standardized definitions for these indicators.
The Basis for the Handbook
This handbook is the outcome of an IDRC funded research project undertaken by LIRNEasia.
The handbook is a result of the recognition that regional policy development and regional
comparisons can only be undertaken, if standardized and comparable indicators are available at
a regional level. While standardization at an international level is difficult, a regional attempt,
especially amongst similar countries could facilitate the effort. Moreover, a regional agreement
may even be necessary in cases where a global definition is not applicable to a particular region.
In light of this, LIRNEasia brought together South Asian and South East Asian National
Regulatory Agencies (NRAs), National Statistical Organizations (NSOs) and Operators at two
workshops in 2006 (in Delhi, India) and 2007 (in Singapore), to deliberate on, and establish a list
of indicators as well as definitions for each indicator.
This handbook presents the indicators and definitions that were discussed at the regional
meetings. The handbook is intended to be a working document, which is regularly improved and
updated based on new information, and new technologies that emerge in the marketplace.
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The handbook provides a basic list of indicators that regulatory agencies should strive to collect
and disseminate. Definitions are included to assist telecommunications analysts, as well as the
growing number of non-specialists interested in telecommunications. Guidelines are also
provided for those responsible for collecting and disseminating data on ICT indicators.
The objectives of this handbook are as follows:
- To identify a minimal set of indicators necessary for inter and intra country
comparison in Asia
- To define as clearly as possible each indicator (and where differences exist across
countries to identify the differences), thereby establishing a reliable dataset that
would be compiled on an annual basis.
The indicators in this document are classified into five groups, for ease of presentation and
discussion. They are as follows:
- Connectivity
- Industry structure and industry impact
- Price and affordability
- Revenue
- Quality of Service
The selected indicators in the groups listed above broadly cover the telecom sector. However,
there are many more indicators that are available. The ITU itself collects data against a long list
of indicators. Other organizations attempt to define many others. The intention of this publication
is not to present every possible indicator that can be collected, but to provide a minimal set of
indicators that are useful for Asian economies. Moreover, in the fast evolving field of ICT, the
basic set of indicators (and their definitions) needs to be regularly revisited and revised in order to
keep up with changes in technology.
All attempts are made to not develop new definitions, and add to the confusion that already exists
globally on definitions. Wherever possible, the ITU or Partnership definitions are used. However,
some existing definitions have significant problems that inhibit inter or intra country comparisons.
These issues are discussed, so that data collectors and data users can be aware of potential
hazards.
General principles in indicator data collection and reporting
Listed below are a basic set of guidelines that need to be followed when reporting indicator data.
These rules should be adhered to when publishing data in order to facilitate the process of crosscountry
comparisons.
- All indicators should be provided in US dollars (USD). In the event that dollar values
are unavailable, the local currency should be converted to USD. The conversion rate
and date should be clearly presented in the footnotes for future clarification.
- Units should always be indicated (e.g. millions/billions).
- Time period should be stated. It is recommended that the indicators listed in this
handbook are collected on a quarterly basis. This is indeed what a number of
countries in the region are doing already (e.g. India). If that is not possible, in the first
instance the data can be reported on an annual basis. When reporting on an annual
basis, the “Year” should be defined – i.e. whether it is a colander year (Jan – Dec) or
the specific Financial Year (which varies from country to country: e.g. July – June or
April-Mar)
- Data authority should be specified. Often more than one organization will
collect/estimate and report data against the same indicators. For example, in India
both the National Census Bureau and the World Bank report population data. The
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Census Bureau reports the total population in 2006 to be 1,114.2 million
(http://www.censusindia.gov.in/Census_Data_2001/Projected_Population/Projected_
population.aspx) while the World Bank reports 1,109.8 million
(http://web.worldbank.org/WBSITE/EXTERNAL/DATASTATISTICS/0,,contentMDK:2
0535285~menuPK:1192694~pagePK:64133150~piPK:64133175~theSitePK:239419,
00.html) for the same year. When the data reported by two organizations do not tally,
it is important to use the figure provided by the National Statistical Organization.
However, the figure given by the alternative organization should be stated in a
footnote drawing attention to the difference between the two.
- For more comprehensive comparisons to be made the indicators listed in this manual
should be converted from US $ to be reflective of Purchasing Power Parity (PPP).
Reporting the figures in PPP will make them more realistic that total US $ numbers
as they represent the local cost of a basket of goods that can be compared at an
international level. This means that the indicator will need to be converted using the
PPP adjusted exchange rate. PPP needs to be calculated on an annual basis and
the methodology can be found at :
http://www.povertyfrontiers.org/ev_en.phpID=1081_201&ID2=DO_TOPIC. Also the
World Bank reports the PPP adjusted exchange rates. The latest figures can be
found at http://devdata.worldbank.org/wdi2006/contents/Table4_14.htm
Demand Side Data vs. Supply Side
This handbook is a guide for regulators who are in a position to collect data from suppliers of
telecom services. However, to measure the state of the information society, a host of other
indicators on usage and access to telecom and ICT services are needed. Data on these
indicators can only be obtained by national statistical organizations (NSO) through household or
business surveys. These indicators and methodologies are not covered in this manual.
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Table of Contents
1 Connectivity Indicators 08
1.1 Number of fixed lines 08
1.2 Number of fixed wireline phones 09
1.3 Number of fixed wireless phones 10
1.4 Total fixed line subscribers per 100 inhabitants 11
1.5 Number of mobile SIM cards 12
1.6 Number of mobile SIM cards – prepaid 13
1.7 Number of mobile SIM cards – postpaid 14
1.8 Total mobile subscribers per 100 inhabitants 15
1.9 Number of telephone connections per 100 inhabitants 16
1.9.1 Number of urban telephone connections per 100 inhabitants 16
1.9.2 Number of rural telephone connections per 100 inhabitants 16
1.10 Total number of Internet connections 17
1.11 Number of broadband Internet connections 18
1.12 Broadband Internet connection charge 19
1.13 Backbone map for a country 20
1.14 Mobile coverage map per operator 21
1.15 Base station map per operator 22
2 Industry Structure and Industry Impact 23
2.1 Total annual investment in the telecom sector 23
2.2 Foreign Direct Investment into the sector 25
2.3 Total tax paid by the sector 26
2.4 Total employment in the telecom sector 27
2.5 Market share 28
2.6 Market concentration 29
3 Price and Affordability 30
3.1 Leased line and Broadband pricing 30
3.1.1 Domestic Private Leased Circuit 32
3.1.1.1 2km link 33
3.1.2.2 100km link 33
3.1.2 International Private Leased Circuit 34
3.1.3 Price of a business broadband connection of 2Mbps 35
3.1.4 Price of a business broadband connection of 256kbps 36
3.1.5 Price of a residential broadband offering of 256kbps 37
3.2 Fixed and Mobile pricing 38
3.2.1 Taxes for fixed line phone subscriptions 40
3.2.2 Taxes for mobile line subscriptions 41
3.2.3 Lowest price of a fixed phone handset 42
3.2.4 Lowest price of a mobile phone handset 43
3.2.5 Tax as a percentage of total mobile service cost (TMSC) 44
3.2.6 Monthly rental charges for a fixed phone line 45
3.2.7 Monthly rental charges for a mobile phone 46
3.2.8 Price of a mobile prepaid connection 47
3.2.9 Price of a mobile postpaid connection 48
3.2.10 Price of a 1-minute fixed phone local call 49
3.2.11 Price of a 1-minute fixed phone national call 50
3.2.12 Price of a 1-minute fixed phone international call 51
3.2.13 Price of a 1-minute on-net call (within subscriber network) 52
3.2.14 Price of a 1-minute off-net call (outside of subscriber network) 53
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3.2.15 Price of a 1-minute peak time call 54
3.2.16 Price of a 1-minute off-peak time call 55
3.2 17 Number of voice minutes 56
3.2.18 Price of a SMS 57
3.3 Utilization 58
3.3.1 MOU made by one subscriber to local (fixed) numbers 58
3.3.2 MOU to national (fixed) numbers 59
3.3.3 MOU to on-net numbers (within the subscriber’s network) 60
3.3.4 MOU to off-net numbers (outside the subscriber’s network) 61
3.3.5 International MOU for fixed traffic – outgoing 62
3.3.6 International MOU for fixed traffic – incoming 63
3.3.7 International MOU for mobile traffic – outgoing 64
3.3.8 International MOU for mobile traffic – incoming 65
4 Revenue 66
4.1 Average Revenue per User (ARPU) 66
4.2 Fixed (wireline and wireless) ARPU per operator 67
4.3 Fixed (wireline and wireless) ARPU for industry 68
4.4 Mobile prepaid ARPU per operator 69
4.5 Mobile postpaid ARPU per operator 70
4.6 Mobile prepaid ARPU for industry (weighted by revenue) 71
4.7 Mobile postpaid ARPU for industry (weighted by revenue) 72
4.8 Mobile data revenue 73
4.9 Roaming revenue earned per SIM 74
4.10 Industry revenue 75
4.11 Industry revenue as a % of GDP 76
4.12 EBITDA margin per operator 77
5 Quality of Service Indicators 77
5.1 Telephony indicators 78
5.1.1 Waiting list for main fixed lines 78
5.1.2 Faults per 100 main (fixed lines) per year 79
5.1.3 Percentage of telephone faults cleared by the next working day 80
5.1.4 Call drop rates 81
5.1.5 Percentage of connections with good voice clarity 82
5.1.6 Call success rate 83
5.2 Broadband indicators 84
5.2.1 Broadband download speed (kbps/Mbps) 84
5.2.2 Broadband upload speed (kbps/Mbps) 85
5.2.3 RTT (milli-second)- Round Trip Delay 86
5.2.4 Jitter (milli-second) 87
5.2.5 Packet- Loss (as a percentage) 88
5.2.6 Broadband availability (as a percentage %) 89
6 General Definitions
6.1 Total Population of a country 90
6.2 Number of households in a country 90
6.3 GDP 91
6.4 Gross National Income 91
6.5 Urban population as a % of urban population 92
6.6 Number of urban households as a percentage of rural households 92
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6.7 Average number of people per household 92
6.8 EBITDA 93
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1.1 Number of Fixed Lines
Definition
1. CONNECTIVITY INDICATORS
Number of fixed phone lines = Number of fixed wireline phone lines + Number of fixed wireless
phone lines.
UN Partnership Definition
A fixed line is a telephone line connecting a customer’s terminal equipment (e.g. telephone set,
facsimile machine) to the public switched telephone network (PSTN), and which has a dedicated
port on a telephone exchange.
ITU Definition
A fixed line is a telephone line connecting the subscriber's terminal equipment to the public
switched network and which has a dedicated port in the telephone exchange equipment. This
term is synonymous with the term main station or Direct Exchange Line (DEL) that is commonly
used in telecommunication documents. It may not be the same as an access line or a subscriber.
The number of ISDN channels should be included. Fixed wireless subscribers should also be
included. If fixed wireless subscribers are not included, specify so in a note.
Comments
Installed v Subscribed Lines
Under normal circumstances subscribed lines (i.e. lines in use) should be reported. However, in
some instances installed capacity differs from the number of lines in use. For example, the
Philippines and Thailand have higher numbers of installed lines than the number of subscribed
lines (due to unused installed lines lying under condominiums). In such situations countries could
report both numbers.
Lines or Subscribers
Data on the number of fixed lines refers to the number of active lines, and not the number of
subscribers. The distinction is important since one subscriber may have multiple lines and
thereby skew figures for data on fixed lines per 100 people. However, in a regional context, it
could be argued whether differentiation between subscribers and lines is at present necessary.
Counting Fixed Wireless (Often CDMA) as a Fixed Phone
Fixed wireless phones often offer limited mobility (e.g. within a particular region of a country) or
even full mobility (works anywhere within the country). As such the argument can be made to
count fixed wireless as part of total mobile. For example, the Telecom Regulatory Authority of
India (TRAI) counts fixed wireless as part of the mobile phone segment. The ITU however counts
the fixed wireless component as being part of the fixed phone segment. Due to the discrepancy in
the indicator’s definition, the data reported by the two agencies will be significantly different. In
any case, when reporting this indicator (Number of Fixed Lines) it is important to state (in a
footnote at least) whether or not fixed wireless is included. This could prevent confusion and
enable cross-country comparisons. Ideally, the number of fixed wireless phones should be
specified in the footnote as well, for ease of calculation.
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1.2 Number of Fixed Wireline Phones
Definition
The number of phones in use that are fixed to a specific location and can support fixed wireline
services. These telecom services should be provided using either a line made of copper or fiber. 1
Comments
Phones and Subscribers Should Tally
This does not prove to be very useful, as this indicator should match the one that counts the
number of fixed line subscribers present in the market.
More Phones than Subscriber Lines
The data required for this indicator should be available with the fixed operators. Often the phones
for fixed lines are provided by the operator of the fixed line service. However, in some cases
offices and homes may have more than one phone supported by a single line. For accurate data
a household survey maybe needed.
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D
1.3 Number of Fixed Wireless Phones
Definition
The number of phones in use that are restricted to a particular area and can support point-topoint
signal transmissions that occur through the air over a terrestrial microwave platform rather
2
than through copper or fiber cables.D
Comments
Categorizing Fixed Wireless (Often CDMA) Under Fixed v Mobile
As CDMA technology is embraced across the region its classification becomes vital. At present
there is no consensus on whether CDMA falls into the fixed or the mobile category. For example
CDMA is considered a fixed line in Sri Lanka, while in India, as of March 2006, it is counted under
mobile. To avoid any confusion it is best that data on the number of fixed lines includes a
footnote indicating if fixed wireless is included or not.
This indicator allows us to measure the growth in the number of phones, and thereby estimate the
demand for fixed wireless technologies.
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1.4 Total Fixed Lines per 100 Inhabitants
Definition
UN Partnership Definition
This is calculated by dividing the number of fixed telephone lines by the population and
multiplying by 100.
The Total Fixed Lines per 100 Inhabitants = No of fixed lines
Population
X 100
Comments
“Active” Only
Differentiating between all fixed line subscribers and active fixed line subscribers (those that have
used the service at least once over a specified period) is necessary in order to avoid over or
undercounting the subscriber base.
Defining the term “active” first requires agreement on the time period during which a fixed line has
been used. Initial inquiries from regional operators indicate that they have the capability to count
lines that have been used within a given period of time. It is therefore suggested, that fixed lines
that have been used in the past 3 months be considered when calculating this indicator.
Further discussion is required to ensure that the collection of such detailed data does not pose
undue costs on the operator, since the gathering of such comprehensive information could prove
to be prohibitive in terms of cost. In the absence of an accepted time-limit or types of services
that define the term “active”, it is suggested that the data be footnoted to provide as much clarity
as possible (e.g. a footnote might state “all fixed lines that have been used in the past 12 months
to make or receive a call are reported”).
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1.5 Number of Mobile SIM Cards
Definition
Number of mobile SIMs = Number of mobile SIMs prepaid + Number of mobile SIMs postpaid
UN Partnership Definition
Users of portable telephones subscribing to an automatic public mobile telephone service using
cellular technology, which provides access to the PSTN. Users of both postpaid subscriptions and
prepaid accounts are included.
ITU Definition
Refers to the use of portable telephones subscribing to a public mobile telephone service and
provides access to Public Switched Telephone Network (PSTN) using cellular technology. This
can include analogue and digital cellular systems. This should also include subscribers to IMT-
2000 (Third Generation, 3G). Subscribers to public mobile data services or radio paging services
should not be included. If this service has a name, please indicate in a note, as well as the year
the service commenced operation.
Comments
Subscribers (Users) v SIMs
It is increasingly clear that data can be collected (at best) on the number of active SIM cards.
Counting the number of mobile subscribers (users) is almost impossible as even users at the
bottom of the pyramid own multiple SIM cards.
“Active” Only
Differentiating between all SIM card subscribers (i.e. counting all SIM cards ever issued by an
operator) and active subscribers (those who have used a service at least once over a specified
period) is necessary in order to avoid over or undercounting the subscriber base.
Defining the term “active” first requires agreement on the time period during which a SIM card has
been used. Initial inquiries from regional operators indicate that they have the capability to count
SIMs that have been used within a given period of time. It is therefore suggested, that SIMs that
have been used in the past 3 months be considered when computing this indicator.
However, defining the term “active” also requires agreement on the type of services – are SIMs
that use any service within the defined time period counted as active, or is it only SIMs that use a
fee-paying service within the defined period that count as active. While this question may not
have significance in CPP (Calling Party Pays) regimes, it may be important in RPP (Receiving
Party Pays) countries or for certain types of plans (e.g. “life-time SIM” cards issued by certain
operators).
Clearly however, further discussion is required to ensure that the collection of such detailed data
does not pose undue expenses on the operator since gathering such comprehensive information
could prove to be prohibitive in terms of cost. In the absence of an accepted time-limit or types of
services that define the term “active”, it is suggested that the data be footnoted to give as much
clarity as possible (e.g. footnote might say “all SIMs that have been used in the past 12 months to
make or receive a call or SMS are reported”),
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1.6 Number of Mobile SIM Cards – Prepaid
Definition
ITU Definition
The total number of mobile cellular subscribers using prepaid (also known as “pay as you go”)
cards. These are subscribers that rather than paying a fixed monthly subscription fee, choose to
purchase blocks of usage time. Only active prepaid subscribers that have used the system within
a reasonable period of time should be included. This period (e.g., 3 months) should be indicated
in a note.
Comments
Focus on Active
This definition emphasizes the need to collect data only on active prepaid subscribers, and
therefore circumvents the issue regarding inactive SIM card users. As already noted, problems
arise when defining an “active” SIM card. Debates exist with regard to whether the definition
should include any SIM that has been used within a defined period, or any SIM that has used a
fee-paying service in the defined period.
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1.7 Number of Mobile SIM Cards – Postpaid
Definition
The total number of mobile cellular subscribers who have entered a binding contract with an
operator for the provision of a particular service based on a fixed monthly or annual subscription
fee.
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1.8 Total Mobile Subscribers per 100 Inhabitants
Definitions
UN Partnership Definition
This is obtained by dividing the number of mobile cellular subscribers by the population and
multiplying by 100.
Mobile SIMs per 100 inhabitants = Total number of Mobile SIMs in use
Total population
X 100
Comments
Variations in Mobile Density Values
Multiple data sources in a single country tend to provide differing values on the number of
mobiles per 100. This data discrepancy is often a result of the use of varying population figures.
For example in Pakistan the population figure listed by the Pakistan Telecom Authority (PTA) in
2005 is 151.6 million, while the World Bank lists a higher figure of 155.8 million. Although this
2.7% difference may seem negligible, it can have a significant impact when calculating the
number of phones per 100.
NRA’s (or other parties reporting data on this indicator) should therefore state exact annual
population figures (or at least include the source of the population data) in order to facilitate
accurate reporting.
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1.9 The Number of Telephone Connections per 100 Inhabitants
1.9.1 The Number of Urban Telephone Connections per 100 Inhabitants
Definition
The number of telephone connections available for every 100 inhabitants living within an urban
area.
The number of urban telephone connections per 100 inhabitants =
Total number of connections (fixed and mobile) within the urban area
Total number of inhabitants within the urban area
X 100
1.9.2 The Number of Rural Telephone Connections per 100 Inhabitants
Definition
The number of telephone connections available for every 100 inhabitants living within a rural
area.
The number of rural telephone connections per 100 inhabitants =
Total number of connections (fixed and mobile) within the rural area
Total number of inhabitants within the rural area
X 100
Comments
Importance of Indicator
Data on the number of telephone connections per 100 people provides a very good
representation of telephone penetration in a country, and is therefore a useful indicator for multicountry
comparisons.
Subscriber Focus
This indicator places a higher emphasis on the number of subscribers in a country, rather than
the number of actual users. Differentiating between active subscribers (those who have used a
service at least once over a specified period) and idle ones is useful in order to avoid over or
undercounting the subscriber base. Accuracy of the subscriber base is essential to obtaining
realistic figures for this indicator.
However, the definition of an active subscriber is unclear. Sections 1.1, 1.4 and 1.5 discuss active
subscribers in greater detail.
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1.10 Total Number of Internet Connections
Definition
This is the total number of Internet connections in use within the country and is the sum of all the
Internet connections issued by each operator. This indicator is not technology specific and would
include all Internet connections such as dial-up, ADSL and wireless.
Comments
Information Societies
The concept of creating a global information society is now of paramount importance. As people
are empowered with the necessary knowledge, they are able to engage better in debates
pertaining to social, economic, political and academic issues amongst others. Better access to
the Internet enables and facilitates this process.
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1.11 Number of Broadband Internet Connections
Definition
This is the total number of broadband connections in operation within the entire country. This
would be the sum of all broadband connections provided by all the operators. A broadband
connection is a high-speed Internet connection using DSL, cable, wireless, fiber optic or satellite
means of transmitting data with connection speeds in excess of 256 kilobits per second.
Comments
Not specific
This data does not indicate the type of technology used to provide the broadband service.
However, this indicator can be used to calculate the percentage of broadband connections within
the total number of Internet connections.
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1.12 Broadband Internet Connection Charge
Definition
ITU definition
The initial, one- time charge for a new broadband internet connection. Refundable deposits
should not be counted. A note should indicate whether taxes are included or not.
Comments
Definition Unclear
The ITU definition proves to be inadequate as there are many crucial areas that are not
addressed. The definition does not specify the speed of a broadband connection. ITU states that
a broadband connection is an always-on facility that offers speeds over 256kbps. Also merely
stating if taxes are included or not will not be useful. A footnote should indicate the additional cost
due to tax.
Bundled Offerings
Some broadband offerings may not have a connection charge as the charge will be bundled into
the monthly rental or the modem charges. This will make comparisons difficult.
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1.13 Backbone Map for a Country
Definition
This is a visual representation of the backbone layout installed within a country at the present
time. The map should indicate the percentage of towns (or villages) covered.
= Number of towns/ villages covered
Total number of towns/ villages
X 100
Comments
Usefulness of Map
This map is useful when making comparisons over different time spans, as it details the progress
with regard to backbone rollouts. This indicator is also pertinent in the determination of
broadband penetration. The map provides a visual image of a country’s present ICT position and
what needs to be accomplished in the future – thereby making target setting easier.
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1.14 Mobile Coverage Map per Operator
Definition
This is a visual map of each operator’s network coverage, denoting the areas in which the
operator is represented. The operator should also indicate the area covered as a percentage of
total area.
= Area covered per square meter X 100
Total geographical area of the country
Comments
Importance of Map
The map provides a graphic representation of the extent to which operators are expanding their
coverage. This is especially pertinent in solving the urban/rural divide. However, it is necessary
to be mindful that while coverage extends to different areas, the signal present should also be
strong enough for the proper execution of a voice call. The map makes the setting of targets
easier for both government and for operators.
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1.15 Base Station Map per Operator
Definition
This is a visual map of the base stations owned and/or used by each operator.
Comments
Importance of the Map
The map may cause confusion in countries where operators choose to share base station
facilities. However, the map is useful as it highlights the expansion of infrastructure over time.
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2. INDUSTRY STRUCTURE AND INDUSTRY IMPACT
2.1 Total Annual Investment in the Telecom Sector
Definition
ITU Definition
Total Sector Investment is also referred to as annual capital expenditure. This is the gross
annual investment in telecom (including fixed, mobile and other services) for acquiring property
and network. The term investment means the expenditure associated with acquiring the
ownership of property (including intellectual and non-tangible property such as computer
software) and plant. This includes expenditure on initial installations and on additions to existing
installations where the usage is expected to be over an extended period of time. Note that this
applies to telecom services that are available to the public, and excludes investment in Ctelecom
software Cor equipment for private use.
Comment: This can help public get
better bills, for example.
Comments
Actual Funds vs. Promised Funds
Data on the total investment into the sector should comprise only of the actual investment
received and not promised figures. Often the amount that is promised as investment maybe more
or less than the actual amount that is received.
Company and Industry Level Data
This indicator is to be reported by each company providing telecom services in a country. The
sum of investment figures from each firm are to be added up to obtain the industry investment
number.
Investments in Telecom Services Only
Data should only consist of funds that go into increasing network quality or coverage. Other
forms of investments should not be counted.
Foreign and Local Investments
Investment originating within the country and from outside of the country should be included.
Total Investment = Foreign Direct Investment + local investment
Reporting Incremental Investment (Not Cumulative)
Investment into the telecom sector should be reported as an incremental investment for a
particular year, and not as a cumulative investment over a period of years. Cumulative figures
can be easily calculated by anyone, once they have the incremental investment data.
Importance of Investment Information
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The telecom sector’s long term growth is directly driven by investments in the sector. Therefore,
investment information is a good indicator of the perception of financial attractiveness and the
long term potential of a country’s telecom sector. Declining investment over time can indicate to
the government/regulator if they need to intervene to improve investment prospects.
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2.2 Foreign Direct Investment into the Telecom Sector
Definition
ITU Definition
Annual investment in telecom coming from foreign sources also referred to as Foreign Direct
Investment (FDI).
Comments
What to Include in FDI
FDI that is counted as investment into the telecom sector should relate to investments in physical
infrastructure, such as investments in property, equipment and networks. It does not refer to (and
should not include) monies injected from a foreign firm that acquires a lasting management
interest in a firm or enterprise (because such funds do not go toward improving network coverage
or costs or telecommunication services through other means).
Reporting Incremental Investment (Not Cumulative)
FDI should be reported as incremental investment for the year in consideration, and not as a
cumulative investment.
Company and Industry Level Data
The FDI received from each company providing telecom services should be obtained. The sum of
FDI obtained by the companies should be reported as the total FDI to the sector.
Importance of FDI to the telecom sector
FDI plays a key role in improving the telecom services in a country. This makes it a crucial
indicator in measuring the success of the telecom sector. FDI is now recognized as being vital for
the development of the sector and the national economy as a whole. However, countries such as
India seem to attract significant local investment as well. Policy makers, regulators, investors and
other interested parties will therefore need FDI figures to be disaggregated from total investment,
to study the trends and patterns of investment into the sector.
25

2.3 Total Tax Paid by the Sector
Definition
This should entail all monies that have been paid by operators for taxes levied for the previous
financial year.
This can be calculated by obtaining the tax revenue remitted to the State by the telecom
operators. This data should be available in Central Bank reports.
Comments
Tax Components
The definition of tax includes corporate income tax, sales tax and levies such as service tax,
license fees, and spectrum taxes. These components could also be reported separately by firms
wherever possible. Many countries have very different tax regimes. Component-wise reporting
enables more meaningful comparisons.
Importance of Tax Information
The total tax collected indicates the sector’s contribution towards government revenues, and
therefore the importance of the sector vis-à-vis the total economy. Tax data also flags areas that
are being excessively taxed. However, in order to do so the various tax components would have
to be calculated separately.
Company Level and Industry (Sector) Level Data
The total tax paid by each company providing telecom services should be obtained. The sum of
the total tax reported by each company would be the total tax paid by the telecom sector.
Reporting in a Useful Format
Tax data is most useful if it is stated as a percentage of total government revenue, or as a
percentage of total industry revenue. Therefore, along with the absolute figure for tax paid for the
year, it is almost always useful to report at least one of the above mentioned percentages.
Problems Associated with Accounting Structures
Cross-country comparisons are made difficult as various countries have different financial years,
with some ending in December while others in May/June. Most countries have varying tax
regimes making country comparisons difficult, unless a breakdown of the various tax components
are given.
26

2.4 Total Employment in the Telecom Sector
Definition
The total number of people, both direct and indirect, who are employed in the telecom sector.
UN Partnership Definition
Total business workforce represents all persons engaged in domestic production in the business
sector. In a national accounts framework, employment can be measured in terms of headcounts,
jobs, full-time equivalents or hours worked. Currently, total headcounts or jobs are used for most
countries.
ITU Definition
Total Full-Time Staff (Direct Employees)
Total full-time staff employed by telecommunication network operators in the country for the
provision of public telecommunication services, including mobile services. Part-time staff should
be expressed in terms of the full-time staff equivalent.
Comments
Estimating Indirect Employees
While data on direct employees is reasonably easy to collate, indirect employment is much more
difficult to measure. Indirect employment includes (full-time equivalents) of employment created
to provide telecommunication related services. This would consist of retailers selling prepaid
mobile cards, companies involved in the installation of telecom towers and so on. Data on
indirect employment could be estimated, but in such instances the assumptions on which the
information is based should be specified. Some resellers of telecom services may not be
registered as doing so, but will provide services from his/her residential line. Invariably this
indicator will always be reported below the real level.
27

2.5 Market Share
Definition
Individual operators’ market share should be computed in terms of subscribers, revenue and
minutes of usage. Market share is calculated in 3 ways – Share of Subscribers, Share of
Revenue and/or Share of Minutes as:
Subscribers of Firm X
Total Subscribers of all firms
or
X 100
Revenue of Firm X
Total Revenue of all firms
X 100
or
Minutes of Use of Firm X
Total Minutes of Use of all firms
X 100
The following indicators should be reported:
Fixed (wireline + wireless) market share by number of subscribers
Fixed (wireline + wireless) market share by revenue
Fixed (wireline + wireless) market share by minutes of usage
Mobile market share by number of subscribers
Mobile market share by revenue
Mobile market share by minutes of usage
Comments
Market Share and the SIM Issue
Market share of mobile firms can be over or understated when computations are based on the
number of SIM cards issued by an operator. Confusion arises when operators offer free SIM
cards to customers. These free cards are used until their value runs out, after which customers
tend to throw the card away. Operators who include these free SIM cards in their market share
calculations tend to indicate an inflated market share. Therefore, for a more comprehensive
representation of market share for the mobile sector, Share of Revenue or Share of Minutes
seem to be better indicators.
28

2.6 Market Concentration
Definition
Market concentration for fixed and mobile markets is calculated using the Herfindahl Herschman
Index (HHI). The HHI is calculated as follows:
HHI = (M 1 ) 2 + (M 2 ) 2 + (M 3 ) 2 + …..+ (M n ) 2 where M n is the market share of a firm. As
noted earlier, M n can be calculated for subscribers (or SIMs), minutes or revenue.
The following indicators should be reported:
HHI for fixed markets using market share by number of subscribers
HHI for fixed markets using market share by revenue
HHI for fixed markets using market share by minutes of use
HHI for mobile markets using market share by number of subscribers
HHI for mobile markets using market share by revenue
HHI for mobile markets using market share by minutes of use
Comments
The HHI
The HHI is a widely accepted tool for measuring market concentration. It takes into account the
relative size and distribution of all firms instead of just the top four or five firms in a market. It
approaches zero when a market consists of a large number of firms of relatively equal size.
HHI Ranges
A market in which the HHI is between 1000 and 1800 is considered to be moderately
concentrated. If the HHI is in excess of 1800 points it is then considered to be concentrated.
Flagging Anti-trust Concerns
In the United States, transactions that increase the HHI by more than 100 points in concentrated
markets raise anti-trust concerns, under the Horizontal Merger Guideline issued by the US
Department of Justice and the Federal Trade Commission.
29

3. PRICE AND AFFORDABILITY INDICATORS
3.1 LEASED LINE and BROADBAND PRICING
The increasing internationalization of business activity has led to rising demand for leased lines
and reliable broadband services. Business Process Outsourcing (BPO), for example, has been a
significant contributor to leased line subscriber growth. The global BPO industry as of 2006 is
estimated at US$120–150 billion, of which offshore BPO constitutes approximately US$11.4
3
billionD D. As the expansion of the BPO industry shows no signs of slowing, many countries are
becoming motivated to provide competitive leased line charges in order to gain a slice of the
“BPO pie”. However, this has proved to be easier in theory than in practice. Countries have tried
unbundling their local loops and liberalizing their international gateways, with varying levels of
success.
Given the importance of reliable, fast and competitive broadband access, the indicators listed
below are important, and should be made available in order to conduct cross-country
comparisons, especially in Asia.
The indicators in this category should be collected from all operators in the sector. In the event
that this is not possible (or competitive offerings are not available), leased line rates of the
incumbent should be used. As for broadband charges, the cheapest package corresponding to
the requirements should be selected and reported.
- The annual rental charged for a 2km leased line link at a speed of 2Mbps.
- The annual rental charged for a 100km leased line link at a speed of 2Mbps.
- The annual rental charged for a commercial broadband offering at a speed of 2Mbps
- The annual rental charged for a commercial broadband offering at a speed of
256Kbps.
- The annual rental charged for a residential broadband offering at a speed of
256Kbps.
When reporting prices only the annual rental charged for provision of the service should be
stated. The rates should not include any discounts, installation and modem charges. It should
also be independent of any taxes.
As the General Principles section in the Introduction to the Handbook indicates, all prices should
be stated in terms of an international currency, such as US Dollars. When rates figures are
converted from the local currency into an international currency, the exchange rate used and the
date of the currency conversion should be specified. As also indicated in the “General Principles”
section, prices should be reported in terms of the local currency as well.
For ease of reporting the table format below can be used.
Country
X
Y
2mbps, 2km
DPLC
2mbps, 100
km, DPLC
2mbps
broadband
business
connection
Minimum
256kbps
broadband
business
connection *
Minimum
256kbps
broadband
residential
connection
30

* Note: In the event a 256kbps offering is not available the package with the next lowest speed
offering available should be used. However, it has to be lower than 2mbps. If the lowest offering
is at 2mbps speed, the cell should read: N/O (No Offering).
When using this table format, extensive footnotes will be required to explain pricing computations.
31

3.1.1 Domestic Private Leased Circuits (DPLC)
Definition
A leased line connects two locations for private voice and/or data telecommunication services. A
leased line is a reserved circuit between two points, and can span short or long distances.
Leased lines maintain a single open circuit at all times, as opposed to traditional telephone
services that reuse the same lines for many different conversations, through a process known as
“switching”.
Comments
Availability
The availability of data on domestic leased line prices does not necessarily imply that the service
exists across a country. For example, in Sri Lanka prices are quoted by the operator, but leased
lines are not accessible in most parts of the country.
No Extras
The definition for DPLC should clearly indicate that discounts, taxes and installation charges have
not been taken into account, as these extra costs will change the price of the link.
Selecting a National Tariff
Within a country, prices from various operators can be compared. However, when comparing
DPLC prices across several countries, it is important to select one price as a representative price
for the whole country (at least in countries where more than one provider offers DPLCs).
4
In such instances the following methodology (based on OECD methods) is proposedD D. In general
though, in the Asian region, there is usually only a single operator, and the below selection is not
applicable.
Number of Countries being
benchmarked
Benchmark tariff for each country
1-5 The lowest tariff is chosen as the benchmark
6-20 The 2nd lowest tariff is chosen as the benchmark
21-40 The 3rd lowest tariff is chosen as the benchmark
32

D
3.1.1.1 Price of a DPLC: 2km
Definition
OECD Definition
The price per month of a 2Mbps line (minimum) for a 2 km link is the international indicator used
for comparing leased line prices. This is also known as a ‘tail link’ charge.
Comments
Rates for 2km Not Provided
All operators may not provide a standard rate for a 2km link. Often, the distance of a tail link
changes from country to country. This makes comparative studies difficult. However, in the event
that the rate for a 2km tail charge is not available, the rate listed as a tail charge should be used
with all details specified in a footnote.
3.1.1.2 Price of a DPLC: 100km
Definition
OECD Definition
The price per month for a 2 Mbps (minimum) line for a 100 km link is calculated by adding the
5
cost of two tail charges (i.e. 2 x - the 2 km link charge) to a 96 km link charge. D
Comments
Long Distance Links
A 100 km link charge is generally used to calculate the price of a long distance link. However,
there is some contention on the exact distance to be considered for computations. The EU uses
a 200km link charge. However, for the Asian region a 100km comparison is more appropriate as
the geographical proximity within cities in Asian countries is less than those of the EU. Therefore,
an indicator measuring a 200km link charge will be irrelevant in the Asian region.
33

3.1.2 Price of International Private Leased Circuits (IPLC)
Definition
An IPLC (International Private Leased Circuit) is a point-to-point private line used by an
organization to communicate across a global office network. An IPLC can be used for Internet
6
access, business data exchange, video conferencing and any other form of telecommunicationD D.
IPLC are reported in the three capacities under which they are available. That is E1 (2Mbps), DS-
3 (45Mbps) and STM-1 (155Mbps) and should be reported under these categories.
Comments
Half Circuits
International leased line prices are often quoted as half circuit prices. However, a full circuit price
cannot be computed simply by adding two half circuit prices. Therefore, the total cost of an
international leased line from destination X to Y cannot be accurately ascertained.
Price Variations
International leased line prices are difficult to obtain. When available, these prices vary on a
case-by-case basis, making comparability across different countries in a region difficult. Since the
charges are distance specific, the data should focus on the benchmark destinations. No
international consensus exists with regard to destinations. However, for the purpose of collecting
comparable indicators the following destinations are recommended.
Country*- US (West Coast),
Country – Singapore
Country – India
Country – UAE
Country - Germany
*- Should be the national country from which the IPLC originates.
34

D
3.1.3 Price of a Broadband Business Connection of 2Mbps
Definition
This should be the annual rental charged for a commercial broadband offering with an average
upload/ download speed of 2Mbps. The cheapest unlimited download capacity package rate
should be used. The price should not take into account any taxes, discounts, or modem and
7
installation charges. The price is not technology specific. D
Comments
Bundled Offerings
Package rentals may sometimes contain bundled offerings with other products. Packages can
also entail a contract for a minimum period of time.
Selecting a regional Tariff
When regional comparisons are done, it becomes problematic as to which country or rate should
be used to represent the region. However, when comparing broadband prices across regions, it is
important to select one price as a representative price for the region (as the rate offered in
countries within a region will differ).
8
In such cases the following methodology should be adoptedD D.
Number of countries
Benchmark
1-5 The lowest tariff is chosen as the benchmark
6-20 The 2nd lowest tariff is chosen as the benchmark
21-40 The 3rd lowest tariff is chosen as the benchmark
35

3.1.4 Price of a Broadband Business Connection of 256kbps
Definition
This should be the annual rental charged for a commercial broadband offering with an average
upload/ download speed of 256kbps. The cheapest unlimited download capacity package rate
should be used. The price should not include any taxes, discounts, or modem and installation
charges. The price is not technology specific. 4
Comments
No Offerings of 256kbps
Some countries do not offer speeds of 256kbps, and therefore this indicator becomes irrelevant
for those countries.
Bundled Offerings
Package rentals may sometimes contain bundled offerings with other products. Packages can
also entail a contract for a minimum period of time.
36

3.1.5 Price of a Broadband Residential Connection of 256kbps
Definition
This should be the annual rental charged for a residential broadband offering with an average
upload/ download speed of 256kbps. The cheapest unlimited download capacity package rate
should be used. The price should not include any taxes, discounts, or modem and installation
charges. The indicator is not technologically specific. 4
Comments
Bundled Offerings
Package rentals may sometimes contain bundled offerings with other products. Packages can
also entail a contract for a minimum period of time.
37

3.2 FIXED and MOBILE PRICING
The International Telecommunications Union (ITU) collects a series of price related indicators for
mobile and fixed phones. Indicators measured include phone installation prices, monthly
subscription rates, and the price of a 3-minute local call at peak and off-peak times.
However, the OECD uses a price basket comprising a different set of indicators. The OECD
method is recommended for several reasons. The OECD price basket:
• Offers a better gauge of consumer realities by reflecting the customer tendency to bundle
voice and SMS features together.
• Provides a more meaningful picture of affordability by considering for example the total cost
of phone calls per month as opposed to simply comparing the cost of a 3-minute call.
• Reflects prices based on consumer utilization patterns, such as the number of voice minutes
or the number of SMS’s sent.
• Enables comparisons of consumption within a country by collecting data on low, medium and
high end users.
Figures should be presented in US dollars and Purchasing Power Parity (PPP). The data should
be collected for at least the largest operator in a country (i.e. the operator with the largest
subscriber base for a product).
Operators maybe apprehensive regarding the provision of specific types of data based on
concerns of information leakage to competitors. Therefore, a degree of confidentiality and
discretion should be applied. In some instances, confidentiality agreements may need to be
signed.
Further information on collecting data and calculating baskets using the OECD methodology can
be obtained at, Hhttp://www.oecd.org/dataoecd/52/33/1914445.pdfH,
Hhttp://www.teligen.com/t_basket.aspH
The definitions used for the indicators below were extracted from
Hhttp://www.oecd.org/document/23/0,3343,en_2649_34225_33987543_1_1_1_1,00.htmlH.
Given below are the different categories of baskets that can be compiled using the basket
methodology. The baskets listed below indicate the behavior of a high-end user. However, for
data collection and analysis purposes medium and low-end user baskets need to be calculated
as well.
- OECD High Fixed Basket Price ($)/OECD High Fixed Basket Price (PPP)-
This is the OECD price basket for high-end users of fixed phones. The price is
reported in Purchasing Power Parity (PPP) and in US Dollar terms.
- OECD High Mobile Prepaid Basket (PPP)/ OECD High Mobile Prepaid
Basket ($)-This is the OECD price basket for high-end users of mobile prepaid
phones. The price is reported in Purchasing Power Parity (PPP) and in US Dollar
terms.
- OECD High Mobile Postpaid Basket (PPP)/ OECD High Mobile Postpaid
Basket ($)-This is the OECD price basket for high-end users of mobile postpaid
lines. The price is reported in Purchasing Power Parity (PPP) and in US Dollar
terms.
38

- OECD High Mobile (Prepaid, Postpaid) Basket as % of GNI- This is the
OECD price basket for high-end users of mobile (prepaid and postpaid) lines as a
percentage of Gross National Income (GNI). A definition of GNI is provided under
General Definitions
Below are the indicators against which data should be collected for calculating the Price
Baskets.
39

3.2.1 Taxes for Fixed Line Phone Subscriptions
Definition
This consists of all local taxes related to obtaining and maintaining a fixed line connection. For
example taxes such as VAT and GST would have to be included. It is necessary to be aware of
any changes/additions to tax legislation, as this may have a significant bearing on the outcome of
the calculations.
Comments
Essential Data
Data on this indicator is required to calculate the OECD price baskets. It is very important that this
data is accurate, as it can have an impact on the outcome of the basket calculations.
40

3.2.2 Taxes for Mobile Line Subscriptions
Definition
This consists of all local taxes related to obtaining and maintaining a mobile connection. For
example taxes such as VAT and GST would have to be included. It is necessary to be aware of
any changes/additions to tax legislation, as this may have a significant bearing on the outcome of
the calculations.
Comments
Essential Data
Data on this indicator is required to calculate the OECD price baskets. It is very important that this
data is accurate, as it can have an impact on the outcome of the basket calculations.
41

3.2.3 Lowest Price of a Fixed Phone Handset
Definition
This is the price charged by the incumbent or largest operator to provide a fixed phone handset.
This price should not take into account taxes on the handset, or discounts provided for
preferential agreements.
Comments
Varying Prices
Calculating the price of a fixed phone handset is difficult, as competing operators may offer
handsets at a cheaper price. However, as the incumbent has the largest market share it can be
assumed that this would be the average price.
Absence of an Incumbent
Obtaining a price will be difficult in the absence of an incumbent within the market. However, for
the fixed line sector this would prove to be the exception rather than the rule.
42

3.2.4 Lowest Price of a Mobile Phone Handset
Definition
This is the price of the cheapest mobile phone handset that can be purchased within the country.
This price should exclude VAT and GST levies and discounts provided for exclusive agreements.
Comments
Affordability
This is a good indicator of the level of affordability that exists within the country in regard to
mobile phone handsets. The indicator will be useful to operators when making decisions on
expanding the subscriber network. Often the high cost of handsets will hamper the pace at which
people will subscribe to the service.
Features of the handset
Often the price of the handset depends on the features available. Phones that offer advance
features such as a high memory capacity, video conferencing, GPRS will have a premium price.
However, this indicator calculates a phone that has minimum voice and data capabilities.
43

3.2.5 Tax as a Percentage of Total Mobile Service Cost (TMSC)
Definition
Taxes on mobile services account for a substantial proportion of the overall tax burden on mobile
phone ownership.
These taxes include consumption taxes and any tax charges on mobile rental charges and
usage, including VAT and GST.
= (TMSC with tax/ TMSC without tax) – 1
Comments
Greater Relevance
Consumers are more affected by the cost of mobile services, as the cost of handsets and the
connection fee are often discounted when they receive the service. Alternatively it can be argued
that it is believed to be a sunk cost on the part of the consumer.
44

3.2.6 Monthly Rental Charges for a Fixed Phone Line
Definition
This is the price charged for a monthly rental of a fixed line. The price charged by the incumbent
can be considered for this purpose. Calculations should constitute the rental only. Taxes,
discounts and installation rates should be excluded.
Comments
Bundled offerings
Often the monthly rental will be bundled with the unit charge for the service. This will make
calculating and comparison of rental prices difficult. However, for the purpose of calculating the
OECD baskets, it is necessary to determine the real rental.
Given below is the proposed methodology for calculating the rental charge:
If the offering is for 100 free minutes with a monthly rental charge, the following adjustment needs
to be made. The cost of the 101th minute should be used to determine the cost of a call per
minute. This cost can be used to calculate and subtract the cost of the 100 free minutes from the
bundled offering, in order to obtain the real cost of the monthly rental.
Charge for the 101th minute = Y
Rental – (Y x 100) = Real Rental
45

3.2.7 Monthly Rental Charges for a Mobile Phone
Definition
ITU Definition
This is the monthly subscription charge for a mobile cellular service. Due to the variety of plans
available in many countries, the basket methodology adopts the data pertaining to the most
popular package of the largest provider. If prepaid services are used (for those countries that
have more prepaid than postpaid subscribers), the monthly subscription charge would be zero. If
the plan includes free minutes, this should be put in a note. A note should indicate whether taxes
are included (preferred) or not and what the rate is.
Comments
Bundled offerings
Often the monthly rental will be bundled with the unit charge for the service. This will make
calculating and comparison of rental prices difficult. However, in order to calculate the OECD
baskets, it is necessary to determine the real rental.
Given below is the proposed methodology for calculating the rental charge:
If the offering is for 200 free SMS with a monthly charge the following adjustment needs to be
made. The cost of the 201th SMS should be used. This is the charge for an SMS over and above
the bundled offering.
Charge for the 201th SMS = Y
Rental – (Y x 200) = Real Rental
46

3.2.8 Price of a Mobile Prepaid Connection
Definition
This is the price of the most popular prepaid package offered by the largest mobile service
provider.
47

3.2.9 Price of a Mobile Postpaid Connection
Definition
This is the price of the most popular postpaid package offered by the largest mobile service
provider.
48

3.2.10 Price of a 1-Minute Fixed Phone Local Call
Definition
The price charged by the operator for a fixed local call made to a fixed line for the duration of 1-
minute.
If the rate charged for a 1-minute fixed local call differs during peak time and off- peak time then
both rates need to be recorded separately.
Comments
Smaller Charge Parcels
The operator may not have a fixed charge for 1-minute – and may instead calculate charges
based on the number of seconds, e.g. 10 seconds.
49

3.2.11 Price of a 1-Minute Fixed Phone National Call
Definition
The price charged by an operator for a fixed national call made to a fixed line for the duration of
1-minute.
Comments
Smaller Charge Parcels
The operator may not have a fixed charge for 1-minute – and may instead calculate charges
based on the number of seconds, e.g. 10 seconds.
50

3.2.12 Price of a 1-Minute Fixed Phone International Call
Definition
The price charged by an operator for a fixed line international call made to a fixed line for the
duration of 1-minute.
If the price of the off- peak and peak time charge for a fixed international call of I-minute differs,
both rates have to be recorded separately.
Comments
Smaller Charge Parcels
The operator may not have a fixed charge for 1-minute – and may instead calculate charges
based on the number of seconds, e.g. - 10 seconds.
51

3.2.13 Price of a 1-Minute On-Net Call
Definition
The price of a 1-minute call made by a user from his/her network to another user on the same
network.
Comments
Smaller Charge Parcels
The operator may not have a fixed charge for 1-minute – and may instead calculate charges
based on the number of seconds, e.g. 10 seconds.
52

3.2.14 Price of a 1-Minute Off-Net Call
Definition
The price of a 1-minute call made by a user from his/her network to another user on a competing
network.
Comments
Smaller Charge Parcels
The operator may not have a fixed charge for 1-minute – and may instead calculate charges
based on the number of seconds, e.g. 10 seconds.
53

3.2.15 Price of a 1-Minute Peak Time Call
Definition
The price of a 1-minute call made during peak time.
Comments
Fixed and Mobile
If available, price data on peak time calls should be reported for both fixed and mobile.
54

3.2.16 Price of a 1-Minute Off-Peak Time Call
Definition
The price of a 1-minute call made during off-peak time.
Comments
Fixed and Mobile
If available, price data on off-peak time calls should be reported for both fixed and mobile.
55

3.2.17 Number of Voice Minutes
Definition
The total number of voice minutes provided by the operator for the duration of one month.
Comments
Concerns with the Indicator
This does not give specific data as to the amount of voice MOU that are made to local, national,
international, on-net and off-net services.
56

3.2.18 Price of a SMS
Definition
ITU Definition
The price of sending a national Short Message Service (SMS) message from a mobile handset.
This indicator needs to be reported for the following categories,
- Price of a local SMS
- Price of a national SMS
- Price of an international SMS
Comments
Concerns with the Definition
The definition does not specify if this is the charge for a SMS sent to a number within the sender’s
network or a competitor’s network. Often these charges prove to be quite different.
57

3.3 UTILIZATION
Data on traffic utilization indicators are also required for price basket calculations.
This data should be collected separately for incoming and outgoing calls, and for each operator.
Data for the indicators listed below should be collected for a one month period.
3.3.1 MOU (Minutes of Use) Made by A Subscriber to Local (Fixed) Numbers
Definition
This is the total Minutes of Use made by a fixed line or mobile customer to local fixed numbers
(fixed wireline and wireless) within a period of one month. This should be calculated as follows,
Total MOU made by one subscriber to local fixed numbers =
Total MOU made to local fixed numbers
Number of subscribers
Comments
Data Not Specific
This indicator does not discriminate on the source of origin of the call – whether mobile or fixed.
Therefore, it is not possible to determine as to which, of the two technologies has higher usage.
58

3.3.2 MOU to National (Fixed) Numbers
Definition
The total number of minutes of use (MOU) made by fixed line subscribers (fixed wireline and
wireless) or mobile subscribers to national fixed lines within a period of one month.
Comments
Data Not Specific
This indicator does not discriminate between mobile and fixed. Therefore, it is not possible to
determine as to which, of the two technologies has higher usage.
59

3.3.3 MOU to On-Net Numbers (Within Subscriber’s Network)
Definition
ITU Definition (for outgoing/originating mobile minutes to same mobile network)
The number of minutes made by mobile subscribers to the same mobile network (within a
country).
Comments
Concerns with the Definition
The ITU definition does not specify a time period over which this data should be collected.
Special Rates
This figure often tends to be high, as a result of special packages and rates that are offered by
the operator to subscribers within its network.
60

3.3.4 MOU to Off-Net Numbers (Outside of Subscriber’s Network)
Definition
ITU Definition (for outgoing/originating mobile minutes to other mobile networks)
The number of minutes made by mobile subscribers to other mobile networks (within a country).
Comments
Concerns with the Definition
The ITU definition does not specify a time period over which this data should be collected.
Data Not Specific
Data on total MOU do not offer an accurate insight into market conditions. For research and
policy requirements more detailed data may have to be obtained from the operators.
61

3.3.5 International MOU for Fixed Traffic - Outgoing
Definition
ITU Definition
This covers the effective (completed) fixed traffic originating in a given country to destinations
outside that country. The indicator should be reported in number of minutes of traffic.
Comment
Concerns with the Definition
The ITU definition does not specify a time limit, and hence proves to be inadequate.
Data Not Specific
This indicator does not offer information on which countries are receiving the largest quantity of
traffic. It also does not discriminate on the basis of whether the receiver of the call is a fixed or
mobile line.
62

3.3.6 International MOU for Fixed Traffic - Incoming
Definition
ITU Definition
Effective (completed) fixed traffic originating outside the country with a destination inside the
country. The indicator should be reported in number of minutes of traffic.
Comments
Concerns with the Definition
The definition provided by the ITU proves to be insufficient as it does not specify a time period for
which this data should be collected.
Data Not Specific
As the indicator provides data only on the total international Minutes of Use, it does not offer any
information on the countries from which the highest volume of calls originate.
63

3.3.7 International MOU for Mobile Traffic – Outgoing
Definition
ITU Definition
The number of mobile minutes originating in a country to destinations outside that country.
Comments
Concerns with the Definition
The definition does not specify a time period in which the data should be collected. This indicator
will also not provide information on which countries receive the highest volume of traffic.
64

3.3.8 International MOU for Mobile Traffic – Incoming
Definition
ITU Definition
Number of incoming minutes (fixed and mobile) received by mobile networks from another
country.
Comments
Concerns with the Definition
The definition does not specify a time period in which the data should be collected, and also does
not provide any information on which countries generate the highest volume of traffic.
65

D
4. REVENUE
4.1 Average Revenue Per User (ARPU)
Definition
ARPU is calculated by dividing total revenue by the number of subscribers of a fixed or mobile
service. ARPU data should be stated in US dollars.
Comments
ARPU or ARPS
The distinction between the number of users per subscription and the number of subscribers
becomes important when operators compute their average revenues, as the average revenue per
user (ARPU) could differ significantly from the average revenue per subscriber (ARPS).
Voice v Data
At present most operators only report total ARPUs, and do not distinguish between revenues
from voice and those from data/other value added services (though these calculation are done
internally by the operators). However, separate figures on these revenue components can be
useful in order to accurately analyze the mobile telecommunications market. Therefore, NRAs
might consider requesting operators to provide ARPUs for voice and for data (or other value
added services) in the future.
AMPU vs. ARPU
It is argued that the Average Margin Per User (AMPU) is a better measure than the ARPU as it
takes into account the cost of providing one unit of the service. Often it is the profit that is made
that indicates the stability of the operator, thereby taking the focus away from revenue and on to
the margin or profit.
Eg: - If the revenue earned from a SMS is 10 cents the ARPU would be a satisfactory rate.
However, if the cost of providing the SMS is 13 cents there clearly seems to be a problem that the
ARPU is not showing, The AMPU calculation will take this into account, and indicate a more
realistic picture of the operator’s situation.
The downside of AMPU is that it takes into account all the various tax deductions that need to be
made as well. This maybe undesirable for comparisons, especially when a country has unrealistic
tax structures.
AMPU has been noted to be more useful for wireless operators, as they may have smaller
margins per user. AMPU also demonstrates that a low-end user may not be an unprofitable one,
9
as an ARPU indicator may suggest.D
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4.2 Fixed (Wireline + Wireless) ARPU per Operator
Definition
An operator’s total revenue from fixed wireline and fixed wireless services divided by the number
of subscribers for fixed services.
Comments
Concerns with Fixed Wireless
Comparing data for this indicator can get complicated as some countries consider fixed wireless
services such as CDMA as a mobile connection. This argument has been discussed in length in
1.1
67

D
4.3 Fixed (Wireline + Wireless) ARPU for Industry
Definition
The typical methodology for calculating ARPU for the industry is by dividing the total sum of
revenues from access fees, incoming and outbound traffic, visitor roaming and value added
services over a twelve-month period, by the weighted average number of subscribers during that
10
same twelve-month periodD
D.
Comments
Providing a Larger Picture
Industry ARPU gives an overall picture as to the revenue earning capability of the industry as a
11
whole. Often it proves to be a strong driving force for new investments.D
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4.4 Mobile Prepaid ARPU per Operator
Definition
An operator’s total revenue from mobile prepaid services divided by the number of subscribers for
mobile prepaid services.
Comments
Problems with the Number of SIM Cards Issued
When measuring this indicator it is necessary to determine if there are any inactive SIM cards,
and eliminate them from the total number of subscribers. The operator will have to be given a cutoff
period for the calculation of active SIM cards – eg: the number of SIM cards that have been
active in the last three months.
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4.5 Mobile Postpaid ARPU per Operator
Definition
This is an operator’s total revenue from mobile postpaid services divided by the number of
subscribers for mobile postpaid services.
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4.6 Mobile Prepaid ARPU for Industry (Weighted by Revenue)
Definition
The total industry revenue for mobile prepaid services divided by the total number of subscribers
for mobile prepaid services.
Comments
Number of Active SIMs
Once again the problem of active SIM cards comes into play when calculating the total number of
subscribers. Often due to various marketing promotions SIM cards maybe given free of charge.
This would inflate the number of subscribers quite significantly. A cut-off period needs to be
provided to operators, stating for example that only SIM cards active within the last three months
should be counted.
71

4.7 Mobile Postpaid ARPU for Industry (Weighted by Revenue)
Definition
The total industry revenue for mobile postpaid services divided by the total number of subscribers
for mobile postpaid services.
72

4.8 Roaming Revenue Earned per SIM
Definition
ITU Definition
Total number of roaming minutes made by own mobile subscribers to make and receive calls
when outside the country (outside home network), e.g., when travelling abroad.
The revenue earned by each SIM needs to be calculated in the following manner. This indicator
needs to be computed by each operator on a monthly basis.
= Total revenue earned by the operator
Number of SIMs with roaming facilities
Comments
Roaming Revenues Rising
Revenue earned from roaming continues to rise, and so it is important that a quantitative analysis
be undertaken. Operators are therefore required to calculate and publish the necessary data.
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4.9 Industry Revenue
Definition
ITU Definition
This is the total (gross) telecommunication revenue earned from all (fixed, mobile and data)
services within the country. This should exclude revenues from non-telecommunications services.
Revenue (turnover) consists of telecommunication service earnings during the financial year
under review. Revenue should not include monies received in respect of revenue earned during
previous financial years; neither does it include monies received by way of loans from
governments, or external investors, nor monies received from repayable subscribers'
contributions or deposits. Revenues should be net of royalties.
Comments
Benefits of the Indicator
Total Industry Revenue and Total Revenue as a % of GDP provide a snapshot of the sector’s
performance and its economic contribution to the nation’s growth. These two indicators offer a
basis on which to formulate industry related policies on aspects such as taxes and incentives.
It also provides a benchmark for more realistic comparisons between countries.
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4.10 Industry Revenues as a % of GDP
Definition
The total industry revenue divided by GDP (Gross Domestic Product), multiplied by 100.
Industry revenue as a % of GDP = Total Industry Revenue
Gross Domestic Product
X 100
Comments
Economic Contribution
This indicator highlights the contribution that the industry is making towards national GDP. This
data helps during policy formulation and FDI promotion.
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4.11 EBITDA Margin per Operator
Definition
An operator’s EBITDA divided by annual revenue.
Comments
Benefits of the Indicator
Measuring the EBITDA margin is important to ascertain a telecom operator’s profitability. It is
necessary that EBITDA is considered and not net earnings. This is because EBITDA eliminates
discrepancies that arise due to countries having different tax rates, and operators using varying
depreciation and amortization rates. Also the EBITDA margin provides a sound benchmark for
the purposes of comparison.
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5. Quality of Service Indicators
An understanding of the basic concepts in the Quality of Service (QoS) in telecommunications is
essential for both operators and regulators. As people increasingly rely on the new services for
their lifestyle and work, their expectations for high reliability and quality are bound to rise.
Operators need to be aware that QoS is therefore likely to become a major differentiator in a
highly competitive telecommunications market. Also the regulator have to be aware of this
phenomenon and monitor the quality of the service provided by the operator. Due to the
increased importance attributed to the monitoring of quality operators are encouraged to invest in
software that enables monitoring these indicators in a systamatic manner.
The indicators listed in this manual are general in nature. However, more specific and detailed
indicators can be adopted.
For ease of collecting and disseminating data the quality of service indicators are divided into two
categories.
- Telephony indicators
- Broadband indicators
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5.1 TELEPHONY INDICATORS
5.1.1 Waiting list for main fixed lines
Definition
ITU Definition
Un-met applications for connection to the Public Switched Telephone Network (PSTN) due to a
lack of technical facilities (equipment, lines, etc.). The waitlist should reflect the total number
reported by all PSTN service providers in the country.
Comments
Potential for new entrants
Shows the potential consumer bank that a new entrant can serve. The number of applications
waiting to be connected would indicate those that are over and above the capacity that is already
in place.
New capacity needed
This indicator also points out the level of infrastructure that needs to be provided to serve current
demand. The investment needed for this expansion can be calculated using this indicator.
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5.1.2 Faults per 100 main (fixed) lines per year
Definition
ITU Definition
The total number of reported faults to main (fixed) telephone lines for the year. Faults, which are
not the direct responsibility of the public telecommunications operator, should be excluded. This
is calculated by dividing the total number of reported telephone faults for the year by the total
number of main lines in operation and multiplied by 100. The number of faults per 100 main lines
per year should reflect the total reported by all PSTN service providers in the country.
= Total number of telephone faults reported for the year
Total number of main lines in operation
X 100
Comments
Operational efficiency
The operational efficiency of a telecom operator can be calculated through the data in this
indicator. Calculation of operational efficiency is valuable to assess is the operator is providing a
satisfactory service.
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5.1.3 Percentage of telephone faults cleared by next working day
Definition
ITU Definition
Percentage of PSTN faults reported that have been corrected by the end of the next working day
(i.e., not including non-working days, e.g., weekends, holidays). The percent of telephone faults
cleared by next working day should reflect the total number across all PSTN service providers in
the country.
Comments
Customer service
This indicator shows the level of customer service that is offered by the operator. It is a useful
indicator for the regulator to assess the customer service offered to its subscribers by the
operator.
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D
5.1.4 Call drop rates
Definition
A dropped call rate out of completed sending calls or out of completed receiving calls. It
12
calculates the churn rate. D
The Telecom Regulatory Authority of India notes that this figure should be not higher than 3%.
(Hhttp://www.trai.gov.in/trai/upload/Reports/17/qos%20report%2020%20dec%2020031.pdfH)
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5.1.5 Percentage of connections with good voice clarity
Definition
This is the number of calls that did not provide a good connection due to a dropped call,
disturbance, lack of signal etc. The Telecom Regulatory Authority of India notes that this figure
should be not higher than not less than 95%
(Hhttp://www.trai.gov.in/trai/upload/Reports/17/qos%20report%2020%20dec%2020031.pdfH).
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5.1.6 Call success rate
Definition
This refers to the ability to set up and hold a call for two minutes. This measure does not give a
figure for the audio quality of the call. TRAI sets the benchmark for this indicator at 99%
(Hhttp://www.trai.gov.in/trai/upload/Reports/17/qos%20report%2020%20dec%2020031.pdfH).
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5.2 BROADBAND INDICATORS
The broadband indicators listed below are measured using commonly available tools such as
Ping, Web- browsers and Network monitoring tools. These software applications track traffic of
all network connections, and display real- time download and upload speeds in graphical and
numerical form.
The program logs all network traffic and gives daily, weekly and monthly traffic reports. For simple
calculations the free download version of the Broadband Monitor is available at -
Hhttp://www.bwmonitor.com/index.htmH.
Ping is a general tool available in Windows to check destination availability.
The following destinations should be calculated,
- ISP site - the website of the service provider
- National site - well-known sites within the country - preferably hosted by some other
ISP
- Global site - well-known global sites such as Google and Yahoo which are hosted
outside the country.
The indicators should be calculated at different times. The time periods are selected in a manner
that enables the analysis of quality from a low usage period to a heavily used period.
5.2.1 Broadband Download Speed (Kbps/Mbps)
Definition
One of the key advertised metrics in broadband services is the download speed, which defines
the maximum traffic a subscriber can receive. The performance of many residential applications
such as Web-browsing and downloading content also depends on this metric. Attempts should be
made to measure the actual download speed available to the subscriber.
Comments
Proposed Methodology
Prerequisites:
The respective E-Mail accounts in the ISP, National and Global sites are stored with a 10 MB
attachment file.
Test Procedure:
The download speed is measured by downloading a 10MB file from the mail attachment using a
standard Web browser, and by calculating the average download bandwidth using network
measuring tools like Bandwidth Monitor.
Normally the downloading software will indicate the download speed, but this does not include
TCP/IP header and other overheads. Therefore, tools such as Bandwidth Monitor are used, as
they measure the bandwidth by snooping the raw packets that are getting transferred. (Note: The
download speed advertised by the operator is a raw bandwidth).
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5.2.2 Broadband Upload Speed (Kbps/Mbps)
Definition
This is the upstream speed for a broadband Internet connection. This metrics defines the speed
at which the subscriber can send traffic to the Internet. Upload speeds plays a significant role in
responsiveness and real-time applications such as VoIP.
Comments
Proposed Methodology
Prerequisites:
The respective E-Mail accounts on the ISP, National and Global sites are expected to have free
space to upload a 5 MB attachment file.
Test Procedure:
With a stand-alone application, the upload speed can be measured by uploading a 5-MB file to a
YAHOO Mail application, and by calculating the average upload bandwidth using standard
measuring tools such as Bandwidth Monitor.
Standard tools such as Bandwidth Monitor are used, as they measure the bandwidth by snooping
packets. The reasons for doing this are explained in 5.1 on Download Speed.
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5.2.3 RTT (Round Trip Delay) - Milli-Seconds
Definition
This is the time taken for traffic to reach a particular destination and return. The round-trip delay
time is significant in systems that require two-way interactive communication, such as voice
telephony, or ACK/NAK data systems, where the round-trip time directly affects the throughput
rate, such as the Transmission Control Protocol (TCP).
Comments
Proposed Methodology
Prerequisites:
Ensure that the Ping traffic to test-sites is not blocked by a local firewall, and that the sites are
reachable.
Test Procedure:
Ping is a very common tool used to measure RTT. The Ping application generates an ICMP
packet with a timestamp; RTT is calculated by determining the difference between the current
time and the received packet time-stamp. Approximately 1000 ICMP packets need to be
generated to obtain a good average (A RTT ) on the measurement, with an interval of 1 second
between packets.
The initial Ping packet will also take more RTT, for reasons such as a delay due to ARP
resolutions. However, considering the speed of the Internet and the sampling base, this error will
be insignificant.
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5.2.4 Jitter (Milli-Seconds)
Definition
Jitter is the fluctuation/variation of an end-to-end delay from one packet to the next packet within
the same packet stream/connection/flow. Jitter experienced by the packets is more relevant for
real-time traffic such as VoIP.
For example - radio quality voice requires less than 1 ms Jitter, toll-quality voice requires less
than 20 ms jitter, normal VoIP requires jitter to be less than 30 ms. Beyond 30 ms, the VoIP
performance will be low.
(Source:
Connection Magazine, Hhttp://www.connectionsmagazine.com/articles/5/049.htmlH,
CISCO Press Article, Hhttp://www.ciscopress.com/articles/article.aspp=357102&rl=1H)
Comments
Proposed Methodology
Prerequisites:
Ensure that the Ping traffic to the test-sites is not blocked by a local firewall, and that the sites are
reachable.
Test Procedure:
Use the same result as that received for RTT using Ping. The result of the Ping output is saved
in a file. M = A RTT is the average RTT, derived out of 1000 samples. If r 1 , r 2 … r 1000 are the RTT
for individual packets, then the Jitter is derived using the formula given below.
k = 1000
∑ | M – r k | / 1000
k = 1
In the above formula, r k is extracted from the Ping result stored in the file.
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5.2.5 Packet- Loss (as a Percentage)
Definition
This is the number of packets (as a percentage) which do not reach their destination. Packet-loss
can result in highly noticeable performance issues with Streaming Technologies, VOIP,
videoconferencing and so on, and will affect all other network applications to a degree.
Comments
Proposed Methodology
Prerequisites:
Ensure that the Ping traffic to the test-sites is not blocked by a local firewall, and that the sites are
reachable.
Test Procedure:
Ping software is also used to calculate packet-loss. After having calculated RTT and Jitter, Ping
provides a summary of the total number of packets transmitted, packets received and the packets
lost in terms of percentages.
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5.2.6 Broadband Availability (as a Percentage)
Definition
This indicates the number of times broadband services can be accessed. Network nonavailability
can happen due to various reasons like line failure, AAA failure, backhaul failure etc.
This metrics indicates the reliability of the broadband service. During testing if T attempts are
made to connect to the Internet, and if F times the attempt failed, then:
Availability = (1–F/T) x 100%
An attempt is declared as a failure if a connection to the Internet cannot be obtained within 30
seconds.
Comments
Proposed Methodology
Network availability is measured by checking accessibility to the Internet. The experiment should
be run on each ISP/Packages 6 times a day (if the Internet is not reachable, the number of
attempts may need to be extended). Hence if T is the total number of times the experiment is
conducted for an ISP/Package, and F is the number of times the Internet is unreachable, then the
availability for that ISP/Package is calculated as follows.
(1–F/T) x 100%
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6 GENERAL DEFINITIONS
6.1 Total Population of a Country
Definition
World Bank Definition
Population is an estimate for mid-year population, based, in most cases, on a de facto definition,
which counts all residents regardless of legal status or citizenship. Note, however, that refugees
not permanently settled in the country of asylum are generally considered to be part of the
population of their country of origin. Population numbers are either current census data or
historical census data extrapolated through certain demographic models.
Comments
Reporting Rules
When reporting population related indicators, the population figures specified by a country’s
Census and Statistics Bureau should be used. However, if there is a discrepancy between the
Census Bureau’s figures and that of another organization, both figures can be stated.
6.2 Number of Households in a Country
Definition
This is the number of registered households within a country as stated by the respective National
Statistical Organization (NSO).
Comments
Annual Reporting
Since household surveys are generally done every 5-10 years, the Bureau should provide
estimated figures on an annual basis.
90

6.3 GDP (Gross Domestic Product)
Definition
ITU Definition
GDP is the sum of gross value added, at purchaser prices converted at market exchange rates to
the local currency, by all resident producers in the economy plus any product taxes (less
subsidies) not included in the valuation of output. It is calculated without deducting for
depreciation of fabricated capital assets or for depletion and degradation of natural resources.
GDP is equal to GNI less net receipts of primary income. Value added is the net output of an
industry after adding up all outputs and subtracting intermediate inputs. The World Bank does not
use this measure for classification of countries into income groups or poverty levels, as it is
subject to distortions caused by short-term exchange rate fluctuations, policies and interventions.
However, GDP measured in constant, local currency units provides the basis for estimates of
overall economic growth.
Wikipedia Definition
A region’s Gross Domestic Product (GDP) is one of the ways for measuring the size of its
HeconomyH. The GDP of a country is defined as the market value of all final goods and services
produced within a country in a given period of time. It is also considered the sum of value added
at every stage of production of all final goods and services produced within a country in a given
period of time.
GDP = HconsumptionH + HinvestmentH + (Hgovernment spendingH) + (HexportsH − HimportsH)
6.4 Gross National Income
Definition
World Bank Definition
Gross national income (GNI) (formerly gross national product, or GNP) is the sum of gross value
added by all resident producers plus any product taxes (less subsidies) that are not included in
the valuation of output plus net receipts of income from abroad.
91

6.5 Urban Population as a Percentage of Rural Population
Definition
The total number of registered persons living in an urban area as a percentage of the total
number of registered persons living in a rural area.
Total urban population as a percentage of rural population =
Total urban population
Total rural population
X 100
The total urban and rural population figures should be provided in a footnote. It maybe required
for further calculation and verification. The data should be obtained from the National Statistical
Organization (NSO).
6.6 Number of Urban Households as a Percentage of Rural Households
Definition
This is the number of registered urban households stated as a percentage of the number of
registered rural households.
Number of urban households as a percentage of rural households =
Number of urban households
Number of rural households
X 100
Total figures for both the number of urban and rural households should be provided in a footnote.
This information should be obtained from the National Statistical Organization (NSO).
6.7 Average Number of People per Household
Definition
This is the total number of people living in households divided by the number of households in a
country.
Average number of people per household = Total number of people living in households
Number of households
92

6.8 EBITDA
Definition
Earnings before Interest, Tax, Depreciation and Amortization
1 Definition compiled by information gathered from, Hhttp://www.answers.com/topic/landlineH, and
Hhttp://www.pcmag.com/encyclopedia_term/0,2542,t=fixed-line&i=43245,00.aspH.
2 Definition compiled by information gathered from Hhttp://www.webopedia.com/TERM/F/fixed_wireless.htmlH.
3 Can be found on Wikipedia at the following URL: Hhttp://en.wikipedia.org/wiki/Business_process_outsourcingH.
4 This methodology can be obtained from ‘A Preliminary Methodology for the Comparative Analysis of
Domestic Leased Lines Tariffs in the South Asian Region’ report available at
http://www.lirneasia.net/UserFiles/File/leased-line-tariffs-v1.pdf.
5 This formula was obtained from the proposed methodology stated in ‘A Preliminary Methodology for the Comparative
Analysis of Domestic Leased Lines Tariffs in the South Asian Region’ report available at
http://www.lirneasia.net/UserFiles/File/leased-line-tariffs-v1.pdf.
6 Definition compiled through the information extracted from
Hhttp://searchnetworking.techtarget.com/sDefinition/0,,sid7_gci827417,00.htmlH.
7 Excerpts taken from the ITU Internet report, ‘Birth of Broadband’ can be found at
Hhttp://www.itu.int/osg/spu/publications/sales/birthof broadband/exec_summary.htmlH
8 This methodology can be obtained from the ‘A Preliminary Methodology for the Comparative Analysis of
Domestic Leased Lines Tariffs in the South Asian Region’ report available at
http://www.lirneasia.net/UserFiles/File/leased-line-tariffs-v1.pdf.
9 This data and further reasoning is available at Hhttp://www.lirneasia.net/wp-content/uploads/2007/03/challenges-of-highampu-in-a-low-arpu-world-mahinda-herath.pdfH.
10 Excerpt from ‘Increasing Complication in Calculating and Comparing Revenue for Mobile Operators’ by Trisha Mitra.
Can be found at : Hhttp://www.teleconomy.com/waves/tnewsletter/2002/10/page9.htmH
11 This information and more details can be obtained from
Hhttp://www.sciencedirect.com/science_ob=ArticleURL&_udi=B6VCC-4M3BGV3-
1&_user=10&_coverDate=12%2F31%2F2006&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000050221&_ve
rsion=1&_urlVersion=0&_userid=10&md5=0fbcbc7ffa8d13d8cdb2b40b65cd9510H.
12 Data that was used to compile this data can be found at Hhttp://www.celltrek.com/IMAGE/Tech/C.htmH
93