Performance Evaluation of Mobile Network Operators Based on Input-Oriented Constant Return to Scale Model

Abstract

This research evaluated the Performance of major Mobile Network Operators (MNOs) in Nigeria using Data Envelopment Analysis (DEA). The DEA method that is based on Input-oriented Constant Return to Scale (CRS) model is considered. The objectives of this research were to analyze existing methods used for the evaluation of MNOs' performance and explored DEA which is a non-parametric method that relies on a linear programming technique for optimization. The aim is to evaluate the technical efficiency (TE) of each network operator and consequently determine their ranking. The result obtained shows the distributions of MNOs that are technically efficient and those that are technically inefficient. Also, the ranking according to their relative efficiency was presented. The findings, which are based on the CRS model show that among the four Nigerian major MNOs examined (MTN, 9mobile, Glo, and Airtel), 9mobile ranked the highest efficient mobile operator followed by the MTN, then GLO while Airtel has the lowest rank.