Premium
Comparing Operational Efficiency of Mobile Operators in Brazil, Russia, India and China
Author(s) -
Liao ChunHsiung,
González Diana B.
Publication year - 2009
Publication title -
china and world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.815
H-Index - 28
eISSN - 1749-124X
pISSN - 1671-2234
DOI - 10.1111/j.1749-124x.2009.01169.x
Subject(s) - bric , data envelopment analysis , productivity , china , revenue , business , total factor productivity , economics , mathematics , finance , emerging markets , statistics , economic growth , geography , archaeology
Using partial factor productivity and data envelopment analysis approaches, this study measures and compares the operational efficiency of the 10 dominant mobile operators in Brazil, Russia, India and China (BRIC) between 2002 and 2006. The results of data envelopment analysis indicate that the two leading Brazilian mobile operators, Vivo and TIM, are fully efficient throughout the entire period of study; however, Indian mobile operators are the least efficient among BRIC operators. Interestingly, the findings of this study verify that full operational efficiency can be achieved by operators with large revenues, such as China Unicom, and by others with medium and small revenues, such as Vivo, TIM and Oi. Partial factor productivity demonstrates that 3 of the 4 Brazilian mobile operators, Vivo, TIM and Oi, have remarkable productivity ratios, and that the state‐owned operator, China Unicom, has the highest revenue per capital expenditure among BRIC operators. In contrast, Indian mobile operators' productivity ratios are generally low compared to other BRIC mobile carriers.