Improving Profitability at Ufone by Optimizing Operating Expenditure

Abstract

In order to sustain the rigorous competition amongst telecom operators, Ufone is trying to modernize its network and cut down its expenditure. An area of crucial importance in this regard is their operating expenditure to sales ratio. This is a key metric for telecom operators and here Ufone is hemorrhaging money on account of costs associated in running its networks on diesel generators and batteries in the absence of commercial electricity. This is a cash pit for them, and demands immediate attention, if they’re going to have a shot at making this a profitable business as these costs are the major contributor in the overall operation expenditure of a mobile operator. This study attempts to tackle this money pit of operational expenditure by analyzing the revenue loss due to fueling and alternate power arrangements, identifying its loop holes, researching industry ‘best practices’, along with analyzing the organizational challenges of running non Telco operations at a telecom operator.