151
Ghana Technology University College Graduate School Coventry University, London Faculty of Engineering and Computing MSc in Supply Chain Management Project: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana Submitted by: Ahmed Abdulai Tijani Dua (COVSCM0512002) i

The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Embed Size (px)

Citation preview

Page 1: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Ghana Technology University College

Graduate School

Coventry University, London

Faculty of Engineering and Computing

MSc in Supply Chain Management

Project:

The relationship between Key Performance Indicators

(KPIs) and Customer Perceived Quality of Service (QoS): A

Case Study of MTN Ghana

Submitted by: Ahmed Abdulai Tijani Dua

(COVSCM0512002)

Project Supervisor: Ing. Yaw Yawson

May, 2014

i

Page 2: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Declaration

This thesis was submitted as part fulfillment for the award of an MSc degree in Supply Chain

Management

The work is the result of my own investigations. All sections of the content and results, which

were obtained from other workers/sources, are fully referenced. I know that cheating and

plagiarism constitute a violation of Ghana Technology University College and Coventry

University regulations and will be dealt with accordingly.

Signed: …………………… Signed:…………………..............

Ahmed Abdulai Tijani Dua ING YAW YAWSON

(Student) (Supervisor)

Date Date

ii

Page 3: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Table of Contents

CHAPTER ONE..........................................................................................................................................1

1. Background of the Study.....................................................................................................................1

1.1. Statement of the Problem.............................................................................................................4

1.2. Research Questions......................................................................................................................5

1.3. Objectives of the study................................................................................................................5

1.4. Significance of the study..............................................................................................................5

1.5. Scope and Limitation...................................................................................................................6

1.6. Company Profile..........................................................................................................................6

1.6.1. About MTN Group..............................................................................................................6

1.7. Organization of Research.............................................................................................................8

CHAPTER TWO.........................................................................................................................................9

2.1. Introduction.................................................................................................................................9

2.2. The Cellular Concept.................................................................................................................10

2.3. Generations of Mobile Networks...............................................................................................10

2.3.1. The Physical Architecture of a Cellular System.................................................................11

2.3.2. Operation of the Cellular System.......................................................................................12

2.3.3. Mobile Unit Initialization:.................................................................................................13

2.4. Service Quality Standards in the Telecom Industry...................................................................14

2.5. Quality of Service Trends in Ghana...........................................................................................17

2.6. Telecom Service Quality Regulation in Ghana..........................................................................18

2.7. Customers Perception of Quality...............................................................................................20

2.8. Measuring Quality of Service (QoS)..........................................................................................21

2.8.1. Service Profit Chain Model................................................................................................22

2.8.2. The SERVQUAL Model....................................................................................................23

2.9. The Five Gaps in the SERVQUAL Model.................................................................................25

2.10. Key Performance Indicators (General Concept)....................................................................26

2.10.1. KPIs in Telecom Industry..................................................................................................28

2.10.2. Measuring KPIs.................................................................................................................30

2.11. Review of Research by Nimako et al, 2010...........................................................................31

2.11.1. Summary of the Study.......................................................................................................31

iii

Page 4: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.11.2. Findings from Nimako et al’s study...................................................................................32

2.11.3. Concerns on Nimako et al’s Study.....................................................................................32

CHAPTER THREE...................................................................................................................................34

3.1. Introduction...............................................................................................................................34

3.2. Research approach.....................................................................................................................34

3.3. Study Population........................................................................................................................35

3.3.1. Geographical Area.............................................................................................................35

3.4. Sampling and Sampling Procedure............................................................................................36

3.4.1. Sampling size.....................................................................................................................38

3.4.2. Proportional Sampling Techniques....................................................................................38

3.5. Data Collection..........................................................................................................................38

3.5.1. Types of Data.....................................................................................................................39

3.6. Research Tools..........................................................................................................................40

3.6.1. Questionnaires...................................................................................................................40

3.6.1.1. Pre-test...........................................................................................................................41

3.6.2. Interviews..........................................................................................................................42

3.7. Research Strategy......................................................................................................................43

3.8. Purpose of Research..................................................................................................................44

3.9. Ethical Consideration.................................................................................................................45

3.9.1. Research Ethics..................................................................................................................45

3.9.2. Plagiarism..........................................................................................................................46

3.10. Challenges of the Research....................................................................................................46

3.11. Chapter Summary..................................................................................................................46

CHAPTER FOUR.....................................................................................................................................48

4. Introduction.......................................................................................................................................48

4.1. Data Analysis.................................................................................................................................48

4.2. Response Rate............................................................................................................................48

4.3. DEMOGRAPHIC ANALYSIS OF RESPONDENTS...............................................................49

4.3.1. Distribution by Sex............................................................................................................49

4.3.2. Age Distribution of Respondents.......................................................................................50

4.3.3. Occupation Distribution of Respondents............................................................................51

4.3.4. Income Bracket Distribution of Respondents.....................................................................52

iv

Page 5: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.3.5. Education Level Distribution of Respondents....................................................................53

4.3.6. Distribution of Respondents by Subscription Plan.............................................................54

4.4. Subscriber Perceived Quality of Service....................................................................................55

4.4.1. Research Questionnaire 1: It is easier to place a call using MTN. (Call setup Success Rate)55

4.4.2. Research Questionnaire 2: Calls are successful to the end of the call. (Call Drop Rate)....59

4.4.3. Research Questionnaire 3: The Network is always available. (Network Capacity)............62

4.4.4. Research Questionnaire 4: The quality of the call good enough (Quality).........................64

4.4.4.1. The Network Statistics on Call Quality..........................................................................66

4.4.5. Research Questionnaire 4: The network is available everywhere in Ghana (Coverage).....67

4.4.6. Research Questionnaire 5: The customer Service is readily available and are always willing to assist..................................................................................................................................70

4.4.7. Research Questionnaire 6: I will recommend the network to another person.....................71

4.4.8. Research Question One: What criteria is used in measuring customer perception of Quality of Service (QoS)................................................................................................................................73

4.4.9. Research Question Two: What KPIs are monitored by the Network Service Providers.....74

4.4.10. Does KPIs measurements correlate with customer perceptions of Quality........................74

4.5. Chapter Summary..................................................................................................................77

CHAPTER FIVE.......................................................................................................................................78

SUMMARY, CONCLUSION AND RECOMMENDATIONS.........................................................78

5.1. SUMMARY...........................................................................................................................78

5.2. CONCLUSION......................................................................................................................80

5.3. Recommendations..................................................................................................................84

Appendix I : Questionnaires......................................................................................................................85

AGE Distribution......................................................................................................................................85

Bibliography..............................................................................................................................................89

v

Page 6: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

List of Figures

Figure 2-1 Physical Architecture of a Cellular System (a) 23

Figure 2-2 Physical Architecture of a Cellular System (b)............................................................23

Figure 3-1 the map of Greater Accra.............................................................................................46

Figure 4-1 Pie Chart Showing Distribution of Respondents by Gender.......................................59

Figure 4-2 Showing the Distribution of Respondents by Age.......................................................60

Figure 4-3 Occupation Distribution of Respondents.....................................................................61

Figure 4-4 Income Bracket Distribution of Respondents..............................................................62

Figure 4-5 Education Level Distribution of Respondents.............................................................63

Figure 4-6 Distribution of Respondents by Subscription Plan......................................................64

Figure 4-7 Subscriber Perception on Call Setup Success Rate......................................................65

Figure 4-7 Subscriber Perception on Call Setup Success Rate.....................................................66

Figure 4-8 CSSR Statistics from Network Provider......................................................................67

Figure 4-9 Subscriber Perception of CDR.....................................................................................69

Figure 4-10 CDR Statistics from Network Service Provider........................................................70

Figure 4-11 Subscriber Perception of Network Capacity..............................................................72

Figure 4-12 Network Capacity Statistics from Network Service Provider...................................73

Table 4-13 Subscriber Perception on Call Quality........................................................................74

Figure 4-13 Subscriber Perception on Call Quality.......................................................................75

Figure 4-14 BER Statistics from Network Service Provider.........................................................76

Table 4-15 Subscriber Perception on Network Coverage.............................................................77

vi

Page 7: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-15 Subscriber Perception on Network Coverage............................................................77

Table 4-16 Subscriber Perception on Customer Service...............................................................79

Figure 4-16 Subscriber Perception on Customer Service..............................................................79

Table 4-17 Subscriber's Willingness to recommend the Network Service Provider.....................80

Figure 4-17 Subscriber's Willingness to recommend the Network Service Provider...................81

vii

Page 8: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

List of Tables

Table 2-1 NCA KPI Standards......................................................................................................32

Table 4-1 Table Showing Respondents by Gender.......................................................................64

Table 4-2 Showing the Distribution of Respondents by Age........................................................65

Table 4-3 Occupation Distribution of Respondents......................................................................66

Table 4-4. Income Bracket Distribution of Respondents..............................................................67

Table 4-5 Education Level Distribution of Respondents..............................................................68

Table 4-6 Distribution of Respondents by Subscription Plan.......................................................68

viii

Page 9: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

List of Abbreviations

GSM-Global System for Mobile Communications

NCA-National Communication Authority

CDR-Call Drop Rates

KPI-Key Performance Indicator

QoS-Quality of Service

QoE-Quality of Experience

ITU-T-International Telecommunication Union - Telecommunication

CST-Call Setup Time

CCR-Call Congestion Rate

CHR-Call Handover Rate

ISO-International Standard Organization

QA-Quality Assurance

MSC-Mobile Switching Centre

PSTN-Public Switch Telephone Networks

BS-Base Station

BTS-Base Transceiver Station

ix

Page 10: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

UE-User Equipment

MUI-Mobile Unit Initialization

MOC-Mobile Originated Call

NOC-Network Originated Call

MIN:Mobile Identification Number

ESN-Electronic Serial Number

MSISDN-Mobile Station ISDN

MTSO-Mobile Telephone Switching Office

IETF- Internet Engineering Task Force

SDCCH-Standalone Dedicated Control Channel

GCT-Ghana Chamber of Telecommunications

CSSR-Call Set-up Success Rate

PDP-Packet Data Protocol

BER-Bit Error Rate

HOSR-Handover Success Rate

CS-Customer Satisfaction

FACTS: FAST Access Content Trend Statistics

x

Page 11: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Abstract

This study investigates the relationship between Key Performance Indicators of mobile service

providers and Customer Perceived Quality of Service in the telecommunication industry with a

focus on Mobile Telecommunication Network (MTN) Ghana. A total of 452 respondents

participated in the study. Research questions and objectives were set, alongside the hypothesis

that were formulated and tested. Descriptive statistics comprising the simple percentage and

tables were used for data presentation and analysis. Pretest with 10 respondents and the

supervisor for the study were employed in testing our hypotheses. The study revealed that KPIs

and Customer Perceived Quality of Service (QoS) has direct correlation and that there is positive

relationship between KPIs and Customer Perceived Quality of Service (QoS). The researcher

concluded by making the the following recommendation;

Further study should consider expanding the sample size, subscriber base of the network under

review might not necessarily provide the bases for conclusions on the performance of the

network service provider. It is also recommended that future research should include the other

five network service providers in the study, this research was limited in scope to only one

network service provider. It is also recommended that Network Providers should consider getting

feedback from their subscriber since their perceptions on quality can serve as a guide to improve

the quality of services rendered to subscribers, Regulators should also consider carrying out

random survey to solicit for subscriber perceptions on the quality of service rendered to

subscribers. Another recommendation is to review the customer service department.

Finally, the research recommended that Future researchers should consider participating in KPI

measurements to get first hand primary data from which inferences should be made

xi

Page 12: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Keywords: Key Performance Indicators, Mobile Service Providers, Customer, Service, Customer

Perceived Quality of Service (QoS), Service Quality, Quality of Experience (QoE)

xii

Page 13: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Dedication

I lovingly dedicate this thesis to all who seek to better society in the little that they can do.

xiii

Page 14: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Acknowledgement

I would not have been able to accomplish this piece without good health granted by the almighty

Allah, the direction of my department and lecturers, support from family and friends and the

support of all participating respondents.

I want to express my deepest gratitude to my supervisor ING YAW YAWSON for his advice

and counseling in conducting this research.

I would like to express my sincere gratitude to my parents Alhaji Abdulai Dua and Madam

Azumi Dua who has been supportive throughout my education. This research report cannot pass

without acknowledging the contributions of Rafiatu Ahmed Tijani Dua My wife and Jamal-deen

Dua, and friends Patrick Aboku and Pascal N. Ametorwogo who have all been of varying

support throughout this project.

Finally, this research is dedicated to the Almighty Allah who granted the wisdom, health and

strength to me and all those who supported me in conducting this research

xiv

Page 15: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

CHAPTER ONE

INTRODUCTION

1. Background of the Study

The mobile telephone industry has grown with marked successes the world over and Ghana is no

exception. In 1991 the world experienced its first GSM network which later became known as

the second generation mobile telephony. Like every new technology, GSM was met with

challenges; however, this was to change for the better in the subsequent years that followed its

introduction. Africans are not exception to the telephone penetration that is moving swiftly

around us. With the introduction of cellular mobile network in sub Saharan Africa in 1992,

Ghana became one of the continent’s most competitive markets with over 6 operators, which

includes, MTN, Vodafone, Bharti Airtel, Millicom (Tigo) . The latest is the Nigeria’s Globacom

as the sixth one in 2012. The competitive nature among the operators has since brought about the

reduction of voice and data price.

In Ghana alone, with a total of six (6) mobile network operators and approximately over twenty

eight million (28,419,649) active subscribers, the mobile telephone industry is no doubt one of

the most competitive industries in Ghana. According to December2013 Telecom Subscription

report, Ghana had a total population size of 25,627,787 and a subscriber base of 28,026,482

different active mobile lines registered with the various mobile operators (National

Communication Authority, 2014) . The statistics revealed more than one network raising issues

about service quality and customer satisfaction.

1

Page 16: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

As a service oriented industry, issues relating to the quality of service rendered has become a

very crucial part of the business. Quality of service has increasingly become a matter deserving

review especially with increasing sophistication of customers. According to the NCA’s February

mobile voice market share report (National Communication Authority, 2014), 45.38% of the

market share is owned by Scancom (MTN), followed by Vodafone Mobile with 22.41% and

Airtel with 12.36%. Millicom the operators of Tigo hold about 14.28% and Glo Mobile having

about 5.02%. Expresso controls the remaining 0.54% of the market share (Figure 1.1.).

Figure 1.1. Market Share Voice – February 2014 (Source: NCA)

From telecom service providers view, the factors associated with Quality of Services (QoS) also

called KPIs such as Call Drop Rates (CDR), Call Setup Success Rates(CSSR),Billing Errors,

2

Page 17: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Delays and Switching Errors e.t.c. are factors that need to be monitored closely. Customers

Perceived Quality of Service which are based on the customer’s perception of quality also

requires close attention if network operators must retain existing customers and/or attract new

ones.

Quality of Service (QoS) from the Telecom’s perspective is defined as the ability of a network to

provide service at an assured service level (Soldani, Li, & Cuny, 2007). The customers

perceived QoS also called Quality of Experience (QoE) is a measure of the level to which a

particular system meets the expectation of its users (Mostafa & Zeadally, 2012). While QoS was

originally intended for measuring customer-oriented metrics, it is now limited to network

perspective (Lehnert, 2011) measured using Key Performance Indicators. However, Brennan et

al maintain that QoS is a broader term for measuring service quality by attempting to split QoS

into objective and subjective Quality of Experience (QoE) (Brennan, Fleck II, & van der Meer,

Dec 23, 2010). They further indicate that while objective QoE measures QoS in terms of

measurable service, network and application performance metrics, subjective QoE models

quality as perceived by humans in terms of emotions, service billing and experience (Brennan,

Fleck II, & van der Meer, Dec 23, 2010).

According to the International Telecommunication Union - Telecommunication Standardization

(ITU-T), customer perceived Quality of Service is defined as the overall acceptability of an

application or service, as perceived subjectively by the end user. While these definitions of QoS

and QoE remain a matter of contention between several authorities, for the sake of this research

study, the following differentiation and understanding of the terminologies will be adopted for

clarity of purpose and the avoidance of any ambiguities. QoE is the term used to describe

customers perceptions of the performance of a service and Network Quality of service, on the

3

Page 18: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

other hand QoS is the ability of the network to provide a service at an assured service level

(Soldani, Li, & Cuny, 2007) measured using KPIs.

KPIs are parameters used to measure QoS whereas QoE which reflects the customer’s

perceptions or satisfaction are measured using different models such as SERVQUAL.

This study seeks to determine the relationship between Key Performance Indicators such as call

drop rate (CDR), call setup success rate (CSSR), call congestion rate (CCR) and call handover

rate (CHR) and perceived customer Quality of Service in the mobile telephone industry in

Ghana.

1.1. Statement of the Problem

There has been upsurge in customer complaints of network services leading to imposition of

punitive taxes by the regulator. Customers have also ported their phone numbers hoping to get

increased service quality from the receiving network operators. However, network operators

have consistently insisted that they are investing in new technologies and that the key

performance indicators monitored by them point to improving service quality. According to

NCA, the poor service cumulated by the telecommunication operators has resulted NCA getting

tougher on the telecommunication providers. For instance, in 2012, a fine totaling GH¢1.2

million was imposed on five providers in the country due to the poor quality of the services they

rendered to their clients (Kale-Dery, 2013).The trend has transcended beyond the shores of

Ghana. According to Nigeria Communication Commissions (NCC) there have been a fine of

N1.7 billion 18 months ago for poor services (Commision, 2013)

4

Page 19: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

1.2. Research Questions

The study seeks to unravel the answers to questions such as:

What is the criteria for measuring customer’s perception of Quality of Service (QoS) of

telecom mobile services

What Key Performance Indicators are used by the Telecom Providers to measure Quality

of Service

Does a Key Performance Indicator measurement correlate the customer’s perception of

Quality of service (QoS).

1.3. Objectives of the study

The objectives of this study are:

1. To establish the criteria for and the customer’s perception of Quality of Service (QoS)

2. To investigate Key Performance Indicators (KPI) used to monitor Quality of Services

from the Telecom Providers view point

3. To establish and assess the relationship between these KPIs and customers’ perceived

quality of service in the mobile telecom industry in Ghana

1.4. Significance of the study

Telecommunication service providers will find the results of this research useful as it will

provide them with information about their subscribers regarding their responses to their quality

of service. It will also provide them (telecom companies) with the basics for further research into

their KPIs. Customers will find the results of this research useful in understanding how they are

served for calls they make.

5

Page 20: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Students and other researchers will also find information obtained from this research useful in

their quest for information and knowledge on Key Performance Indicators and Customer

Perceived Quality of service in the telecommunication industry. The same is applicable to

professionals in the industry.

1.5. Scope and Limitation

Although this research will be carefully carried out and expected to achieve its objectives, there

are expected unavoidable limitations. First, due to limitations in time and funding, the research

was conducted on a small sample of the target population, this results of the research is limited in

terms of its generalization.

Second, due to limited access to data and information from the telecom company under review,

the researcher had to contend with the limited information that was available for analysis, hence,

data used in this analysis cannot be said to be exhaustive and as further research in this regard

will be necessary for a more conclusive findings.

Finally, the research does not cover other performance indicators used by regulators and other

network service providers except those used by the network provider under study (MTN Ghana).

It does not cover the entire geographical area covered by MTN Ghana and as such is limited in

its application or representation of all subscribers to MTN.

1.6. Company Profile

1.6.1. About MTN Group

MTN, the leading provider of telecommunications services in Africa and the Middle East,

entered the Ghanaian market following the acquisition of Investcom in 2006. MTN’s overriding

mission is to be a vehicle for Ghana’s economic growth and development, helping to promote

6

Page 21: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Ghana’s strong development potential from the provision of world-class telecommunications

products and services, through to innovative and sustainable corporate social investment

initiatives (MTN Ghana, 2014).

MTN is the market leader in the increasingly competitive mobile telecommunications industry in

Ghana with over 12 million subscribers and offering its valued subscribers a range of exciting

products and services under Postpaid and Prepaid subscriptions. MTN’s network coverage is

extensive. It covers all 10 regional capitals, major cities and many rural and remote areas. The

company continues to invest heavily in infrastructure to expand its coverage and capacity across

the country (MTN Ghana, 2014)

Launched in 1994 and according to (MTN Ghana, 2014), the MTN Group is a leading emerging

market operator, connecting subscribers in 22 countries in Africa, Asia and the Middle East. The

MTN Group is listed on the JSE Securities Exchange in South Africa under the share code:

“MTN.” As of 30 June 2013, MTN recorded 201.5 million subscribers across its operations in

Afghanistan, Benin, Botswana, Cameroon, Cote d’Ivoire, Cyprus, Ghana, Guinea Bissau, Guinea

Republic, Iran, Liberia, Nigeria, Republic of Congo (Congo Brazzaville), Rwanda, South Africa,

Sudan, South Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. MTN’s brand is the most

valuable in Africa, and is ranked in the top 100 brands worldwide. MTN’s shares constitute the

biggest primary listing on the JSE – Africa’s largest stock exchange. (MTN Ghana, 2014).

7

Page 22: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

1.7. Organization of Research

Presentation of the research is done in a five chapters; beginning with background to the study,

its significance, scope, questions, company profile and objectives. Review of existing literature

and works by other scholars in the industry is covered in chapter two. Chapter three presents the

research methodology describing how the research process was carried out. Presentations of the

data collection including analysis are considered in chapter four. Finally, the conclusion and

suggestions are covered in chapter five.

8

Page 23: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

CHAPTER TWO

LITERATURE REVIEW

2.1. Introduction

Quality is defined as the totality of characteristics of an entity that bear on its ability to satisfy

stated or implied needs (Antony et al, 2009). This issue of Quality has gained prominence lately

especially those pertaining to services and become a fundamental way of managing any business

anywhere for market growth and profitability in the service Industry (Sinha, 2000) Service

consumers are demanding more from their service providers much as statutory regulatory bodies

mandated to ensure standards are met in the domain within which they are mandated to regulate.

The Telecom Industry being a full-fledged service oriented industry is not spared the ordeal of

having to satisfy on the one hand sophisticated customer and on the other hand meet their licence

agreements with their regulators. This phenomenon raises the issues of service quality in the

industry.

The collective effect of the performance levels of all parameters considered pertinent to a service

is described as services quality (Oodan, 2014). The parameters for monitoring and ensuring

service quality differ from the customer’s and service provider’s viewpoints, in other words

Industry to Industry and Customer to Customer (Oodan, 2014) and each of such parameters may

have different priorities and performance level requirements by different segment of users

(Oodan, 2014) and regulators.

The Standards of service quality in the Telecom Industry is agreed upon by bodies such as the

International Standard Organization (ISO), International Telecommunication Union (ITU)

9

Page 24: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

(Oodan, 2014) and the respective regulatory bodies of the countries within which the service

providers operate.

Service quality especially as perceived by the customer or subscriber is particularly important for

the service provider as this information can serve as a guide to ensure Quality Assurance (QA)

and as well avoid problems with the regulators.

2.2. The Cellular Concept

A cellular network or a mobile network is a radio network which provides wireless network

service for mobile users (Matin, 2014)

A radio network is made up of cells and cells are a small geographical area which is served by at

least one Base Station (BS). A Base Station is a fixed location transceiver which provides

wireless connectivity for mobile users (Matin, 2014).

2.3. Generations of Mobile Networks

First generation

First generation operated on analog telecommunication technologies. First Generation Networks

denoted as 1G offered up to 56kbps of speed of connection and was in use since 1980s

Second Generation

Second Generation (2G) networks Operated on digital telecommunication technologies and has

been in existence since 1991 using Global System Mobile Communication (GSM). Time

Division Multiple Access (TDMA) and Coded Division Multiple Access (CDMA) technologies

are both used over 2G to increase capacity.

Third Generation

10

Page 25: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Third Generation Networks (3G) have been in operation since 2002 and is capable of transferring

data at a minimum speed of 200kbps. Variations include 3.5G, 3.7G both used to increase

capacity up to megabytes (Mbps). Applications like wireless voice telephony, mobile internet

access, fixed wireless internet access, video calls, mobile TV all operate on the 3G technology.

Fourth Generation

Fourth Generation (4G) extends the capabilities of 3G networks in addition to providing mobile

intra-broad band internet access to laptops with USB wireless modems, to smartphones and other

mobile devices. Advanced versions of 4G include LTE. (Matin, 2014)

2.3.1. The Physical Architecture of a Cellular System

The cellular mobile systems have the following fundamental elements

1. Mobile Unit

2. Cell site Base Station (BTS/BS)

3. Mobile Switching Centre (MSC)

4. PSTN (Public Switch Telephone Networks)

(Figure 1.2. Physical Architecture of a Cellular System)

11

Page 26: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 0-1 Physical Architecture of a Cellular System (a) Source: (Kularatna & Dias, 2004)

Figure 0-2 Physical Architecture of a Cellular System (b) Source: (Kularatna & Dias, 2004)

12

Page 27: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.3.2. Operation of the Cellular System

A Cell is define as an active connection used to exchange user data e.g. Voice or IP Packet

between the User Equipment (UE) and the network (Kreher, 2006). Calls are synonymous to

Mobile Communication, which also refers to the conversation established between two

subscribers at two different locations with hand held equipment (Arokiamary, 2009). Even

though, mobile communication has extended beyond voice calls, the concept of voice calls will

be used to explain the operations of the cellular network.

In the operation of the system for having a mobile communication, there are 4 Parts along with

handover mechanisms

1. Mobile Unit Initialization

2. Mobile Originated Call

3. Network Originated Call

4. Call terminations and a handover procedure

Each mobile unit has two unique numbers: The mobile identification number (MIN) and the

electronic serial number (ESN). MIN is the mobiles phone number also called mobile station

ISDN (MSISDN) that is programmable (Kularatna & Dias, 2004). Assigned ESN at the time of

manufacturing. This two numbers are used for proper billing and preventing fraudulent use.

Apart from these IDs, the unit also has a system identification number assigned by the cellular

network used to identify the system to which the mobile unit is subscribed (Kularatna & Dias,

2004)

13

Page 28: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.3.3. Mobile Unit Initialization:

It refers to the processes involved between when a mobile device is switch on and when it

established network connection. The process involves the mobile device scanning designated set-

up channel, selecting a channel with a strong signal and locking on to it. The device received a

System Identification Number (SIN) from the selected channel, which continuously broadcast it.

The device is then transmits its MIN and ESN to the Base Station. The Base Station then

assigned a pair of shared control channels to the device. The device then tune to the assigned

channels, which continuously broadcast system information and incoming calls, alerts. This is

refers to as self-location scheme and it is used in the idle state of the device (Kularatna & Dias,

2004).

2.3.3.1. Mobile Originated Calls:

When a subscriber pressed the send button, a request is send to the based station through the

reverse control channel obtained during initialization. The cell site received the request and

passes it onto the Mobile Telephone Switching Office (MTSO) for authorization. The MTSO

would then select an available voice channel for the call (Kularatna & Dias, 2004).

2.3.3.2. Network Originated Call:

These are initiated by the MTSO, which uses relevant search algorithm to find the destination

device and using the strongest channel, and initiate a user alert (Arokiamary, 2009).

2.3.3.3. Call Termination:

Once the communication is over the respective voice channel are made free and the call is

terminated (Arokiamary, 2009).

14

Page 29: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.3.3.4. Handover:

The aim of handover procedure is to maintain a call in progress irrespective of the movement of

the mobile device. When the mobile device moved from one Base cell to another, the call in

progress is handed over from the originating based cell to a new-based cell (Arokiamary, 2009)

2.4. Service Quality Standards in the Telecom Industry

By its general meaning in everyday language, the term ‘Standard’ is not helpful (Andelin,

Garcia, & Clair, 1992) and despite the diverse meaning and interpretations it represents, the

definition by the Oxford Dictionary will be adopted in this study. The Oxford English Dictionary

Define Standard as a required or agreed level of quality or attainment (Eren, 2005)

Standards are usually agreed upon and subscribed to by groups, organizations and countries such

as ISO, ITU enforced the regulators whose principal role according to Oodan is to interpret the

government’s charter for the sector (Oodan, 2014).

Like Quality, Quality of Service has different definitions and descriptions. Below are a few

sampled definitions by some standards organizations as a set of quality requirements on the

collective behaviour of one or more objects -ISO and ITU (ISO 95) (Mellouk, Tran, & Hoceini,

2013).The demand for networked real-time services grows, so does the need for shared networks

to provide deterministic delivery services. Such deterministic delivery services demand that both

the source application and the network infrastructure have the ability to request, setup and

enforce the delivery of the data. Collectively these services are referred to as bandwidth

reservation and Quality of Service. -IETF (SHE 97b) (Mellouk, Tran, & Hoceini, 2013).A

collective measure of the level of service delivered to the customer (OFO) (Mellouk, Tran, &

Hoceini, 2013).

15

Page 30: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

In the Telecom Industry, QoS in the network perspective is measured technically using Key

Performance Indicators (National Communication Authority, 2014) KPIs provide a tool that

makes QoS both measurable and standardized and to avoid the subjective predisposition of

measuring Quality. To make effective strategic decisions especially regarding citing of cell sites

etc. service providers must keep the measurements of their KPIs up to date. This accession is

well elaborated by Parmentor, who maintains that KPIs represent a set of measures focusing on

those aspects of organizational performance that are the most critical for the current and future

success of organizations (Parmenter, 2011).

In Ghana Standards as monitored by the NCA is provided for by constitution in the National

Communication Authority Act 524, 1996 (Refer Appendix I). The KPIs provided for in the NCA

act are shown as follows:

Table 2-1 NCA KPI Standards

KPI Standard(Ghana)SDCCH 1%Call Setup Time <10 sec in 95% of casesVoice Call Drop Rate 3%Call Congestion Rate <1%

It must however be made clear that QoS cannot be measured from the network providers point of

view alone. This accession is emphasized by (Oodan,2014) that since Quality and QoS affects all

three players in the industry i.e. service providers, regulators and subscribers (Antony, Oodan;

Keith, Ward; Catherine, Savolaine; Mahmoud, Daneshmand; Peter, Hoath, 2009), it must be

measured from the perspectives of all three.

16

Page 31: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

QoS from the customer’s perspective will reflect factors that enable or disable the customer’s

ability to place and maintain calls, hearing the other party in a call and transparent bill systems.

From the service providers view point, QoS will usually take place in the form of counters such

as the number of connect failed calls by the number of total placed calls etc.

2.5. Quality of Service Trends in Ghana

From 26,086,795 in the beginning of 2013 to 28,026482 at the end of 2013, the NCA described

2013 as a good year for the telephone network service providers (National Communication

Authority, 2014) .However, despite the growth of the subscriber base and with a penetration rate

of over 100%, the quality of service cannot be said to have grown with the expansion of the

subscriber base.

It is not uncommon to hear subscribers on the street attribute reasons like “network problem”,

“congestion” e.tc. to problems associated with their communication needs. In June 2013,

Business Ghana (Business Ghana, 2014) carried a news item entitled “Mobile phone users angry

with Telco’s for poor service”. The news item stated how Ghana Telecom subscribers were

complaining of poor service by the Telecom Network Operators. The industry players in turn

attributed reasons such as breaking of cables by contractors, stealing of cables, frequent power

outages and high fees charged by landowners, account for the problems (Business Ghana, 2014)

The interest thing about the above news item is that it is no longer news to complain of network

problems or challenges with placing phone calls in Ghana. This phenomenon is still lingering

despite the fact that the National Communication Authority has penalised the telecom operators

on several occasions (National Communication Authority, 2014). The most recent NCA report

17

Page 32: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

on the Quality of service by the six telecom operators in Ghana is the last Quarter report for

2013.

The NCA report showed that in relation to SDCCH congestion rate measured only Vodafone and

tigo were in compliance with the standard of <1%, all other networks failed and were penalised.

Again apart from Vodafone and tigo, all other network providers failed to meet the required

standard of <10 sec in 95 of cases for call setup time. The measurements for call congestion rate

revealed that MTN, Vodafone and Glo were in compliance with the others failing to meet the

required standard of =<1%. In the area of voice call drop rate, espresso failed to meet the

standard of 3% with all other service providers meeting the requirements (National

Communication Authority, 2014)

All the six network service providers faulted in one way or the other in the measurements of the

identified KPIs and were penalised by the NCA.

Factors that affect QoS from Telecom operators include cable cuts, uneven landscapes, poor or

inadequate infrastructure etc. The National Ghana Chamber of Telecommunications (GCT)

attributes line cuts as one of the reasons for the network services issues. The GCT says

Telecommunication companies in Ghana last year (2013) experienced a depressing 30 per cent

increase in cable cuts (Adrenalin Media, 2012) According to the GCT three-quarters of the cuts

occur during road construction, followed by small-scale illegal mining, which is responsible for

10 per cent of cuts. The rest are theft, vandalism and bushfires. Telecommunication companies

have bemoaned the spate of cable cuts, which significantly affect the delivery of services

(Adrenalin Media, 2012)

18

Page 33: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.6. Telecom Service Quality Regulation in Ghana

As the mobile penetration rate (100.4% as at 2012) continue to improve (Nii & Dowuona, 2013)

and subscribers get more sophisticated coupled with the boom of smart devices and demand for

both voice and data communication increases by the day, Telecom Service Providers cannot but

ensure that the customers/subscribers perception of the Quality of their Services are within

acceptable limits.

Another driving force to ensure conformity to standards and meeting customers’ expectations is

the continued increasing competition between network service providers. For example, in Ghana

alone, for a population of 25 million people, there are over 5 telecom service providers

competing.

In 2013 alone the National Communication Authority had charged the mobile Service Providers

in Ghana to a sum of GH₵1.2 million as penalties for non-conformance to standards (National

Communication Authority, 2014). On some occasions, the Key Performance Indicator values

measured by the service provider are in tandem with the subscribers perceived Quality of Service

(Craighead, 2009).

Quality of Service is important in the Telecom Industry in order to keep existing and attract new

subscribers. According to the National Communication Authority (NCA), Cellular Mobile

Network Service Providers are required to maintain certain minimum Quality of Service of Key

Performance Indicators per their licence conditions (NCA, 2010).

The National Communication Authority as the regulatory body in Ghana Conducts quarterly

Quality of Service Monitoring of the Cellular Networks in the country. This monitoring

measures KPIs including:

19

Page 34: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

1. Stand-Alone Dedicated Control Channel (SDCCH) -Congestion is defined as the

probability of failure of accessing a stand-alone dedicated control channel during call

setup. SDCCH congestion rate should be equal to or less than one percent (1%)

2. Call Setup Time is the period of time elapsing from the sending of a complete destination

address (target telephone number) to the setting up of a call to the receiving terminal.

CST should not be less than 10 sec in 95% of cases

3. Call Congestion Rate (NCA, 2013) is the probability of failure of accessing a traffic

channel during call setup and the traffic channel and should be equal to or less than 1%

(=<1%)

4. Voice Call Drop Rate is the probability of a call terminating without any of the users will

and should be equal to or less than 3% (=<3%) (Refer Table 1.1). (QUALITY OF

SERVICE, 2013)

These KPI’s and their respective thresholds for compliance are assessed as part of the cellular

mobile licence obligations (NCA, 2014).

2.7. Customers Perception of Quality

Services are meant for and expected to be consumed by the customer/subscriber. Perceived QoS

is the customer’s perception of the overall quality or superiority of a product or service with

respect to its intended purpose relative to alternatives (Zeithaml V. A., 2010). Due to the

intangibility of Quality (Zeithaml V. A., 2010).it poses a big challenge in measurement as it is

ultimately influenced by experiences of the customer.

20

Page 35: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

According to Zeithaml, unlike products such as phones and automobiles the criteria used by

customers to evaluate Quality may be complex and difficult to capture precisely (Zeithaml V. A.,

2010) .

The customer’s perception of quality is different from the service provider’s more methodical

and technical tool based and calculated measurements of service quality. While the customer’s

perception is more subjective, the service provider uses more objective means of determining the

various key indicators of quality (KPIs). For example, the customer will determine Quality of

Service (QoS) by the cost of making calls, responsiveness of customer service, and the ability to

place a call, stay connected and as well as the other party.

2.8. Measuring Quality of Service (QoS)

A challenging topic in contemporary quality management theory and practice, service quality

continues to be a challenge for marketers and researchers alike. Compared to products, services

are not easily measured, tested or controlled for quality. Particular reasons include the fact that

service quality is difficult to measure because:

• Service is intangible i.e. it cannot easily be measured, tested or verified

• Services are perishable

• Standards cannot be easily set

• Service quality is more difficult for customers to measure

• Reliance on subjective experience among others

Different researchers have proposed different measurement models for quality measurement, key

among which include Service Profit Chain Model by Heskett et al and SERVQUAL proposed by

21

Page 36: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Parasuraman, Zeithaml and Berry in the 1980s. Both group of research proposed models and

how these models can be used to measure quality by relying on customer experience and

expectations. The purpose of this research is to measure or determine the quality of services

offered by telecom network operators viewed through the lens of a subscriber as against the

values obtained by using network tools to obtain KPIs.

2.8.1. Service Profit Chain Model

The Service Profit Chain Model maintains that there are direct and strong relationships between

profits; growth; customer loyalty; customer satisfaction; the value of goods and services

delivered to customers and employee capability, satisfaction, loyalty and productivity (Heskett,

Sasser, & Schlesinger, 1997). As shown in the diagram below, the SPC works on the premise

that profit and growth are stimulated by customer loyalty and that loyalty is a direct result of

customer satisfaction (Heskett, Sasser, & Schlesinger, 1997). It proceeds to state that satisfaction

is largely influenced by the value of services provided to customers. Hence, value is created by

satisfied, loyal and productive employees. Employee satisfaction in turn results from high quality

support services and policies that enable employees to deliver results to customers (Heskett,

Sasser, & Schlesinger, 1997) .

22

Page 37: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

value is Central to the chain in the customer value equation, which suggest that the value of

goods and services delivered to customers is equivalent to the results created for them as well as

the quality of the processes used to deliver the results, all in relation to the price of a service to

the customer and other costs incurred by the customer in acquiring the service (Heskett, Sasser,

& Schlesinger, 1997) .

2.8.2. The SERVQUAL Model

SERVQUAL is a service quality frame works developed by Parasuraman, Ziethaml and Berry

with the aim of measuring quality in services quality.

The SERVQUAL as proposed by Parasurman, Zeithaml and Berry in 1988 works on the

assumption that customer are able to evaluate the services rendered by a service organization by

comparing their perception of quality with their expectations. This measurement model is

applicable in the service industries including telecom, Banking etc. and involves a set of five

dimensions namely Tangibles; Reliability; Responsiveness; Assurance; Empathy. Figure 1.3

23

Page 38: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

The five dimensions as explained below are also made up of sub dimensions which are specific

to each industry.

Tangibles include appearance of physical facilities, equipment, personnel and written materials.

For example tangibles in the telecom industry will include customer service departments,

appearance and dress code of the customer service personnel, company facilities such as MAST

locations and other visible materials which serve to pose confidence in the organization by

customers

Reliability according to Parasuraman et al refers to the ability of an organization to perform the

promised service in a dependably and accurate fashion. Customers in the telecom industry for

example assess reliability of a telecom company by its network availability, how easy it is to

purchase and load credit, network coverage and stability. Compromise in any of these factors

will result in loss of reliability.

Responsiveness refers to willingness to help customers and provide prompt services. A telecom

organizations ability to respond to customer complains, the visibility of customer service

department and personnel as well as their attitude all constitute responsiveness. Organizations

that are able to assist troubled customers and provide reliable services and explanations for

unexpected network interruptions for example are considered more responsive.

Assurance- customers always want to be assured of the capabilities of their service providers to

provide them (Customers) with the services they so subscribe to. Service providers could ensure

and provide their assurance through their employees by ensuring their employees demonstrate a

higher level of knowledge and inspire trust and confidence.

24

Page 39: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Empathy includes easy access, caring, good communication, customer understanding and

individualized attention provided by the service provider.

Figure 2-3 SERVQUAL Model

2.9. The Five Gaps in the SERVQUAL Model

Gap 1: The difference between management perceptions of what customers expect and what

customers really do expect

Gap 2: The difference between management perceptions and service quality specifications - the

standards gap

25

Page 40: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Gap 3: The difference between service quality specifications and actual service delivery - are

standards consistently met?

Gap 4: The difference between service delivery and what is communicated externally - are

promises made consistently fulfilled?

Gap 5: The difference between what customers expect of a service and what they actually

receive

The gaps and quality dimensions identified in the SERVQUAL framework provide an avenue to

address the difficulties/challenges that service organizations and researchers encounter in an

attempt to measure quality.

In using the SEVQUAL model a five-point scale ranging from five (strongly agree) to one

(strongly disagree) accompany a set of statements (Zeithaml, Parasuraman, & Berry, 1990)

representing each researchable item in the research area. Another Model introduced in this study

is using the Likert Scale. According to Broadersen Likert item is a statement that the respondent

is asked to evaluate (Broadersen, 2008) and according to Trendowicz since a likert scale requires

an odd number of levels , (Trendowicz, 2013) recommended using a five-point Likert scale

which ranges from Strongly disagree to Strongly agree. Juxtaposing the two models. The study is

said to use five-point Likert scale ranging from five (strongly agree) to one (strongly disagree)

This research will attempt to use the SERVQUAL model to measure quality of service provided

by telecom companies in Ghana.

26

Page 41: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.10. Key Performance Indicators (General Concept)

Quality of Service from the perspectives of the network operator or regulators is expressed

technically using measurements of the Key Performance Indicators. Unlike the customer to

whom Quality of Service are expressed using non-technical terms or whose understanding of

quality are expressed by their perceptions, Service providers using measurements of KPIs to

determine Quality of Service.

According to (Parmenter, 2011), KPIs represent a set of measures focusing on those aspects of

organizational performance that are the most critical for the current and future success of the

organization. Due to the critical role KPIs play in the organization they must be measured

frequently. Parmenter recommends daily measurement.

Parmenter identifies seven characteristics of KPIs, and there are;

1. nonfinancial measurements i.e. they are not expressed in monetary terms

2. measured frequently

3. acted on by senior management team

4. must be understood by all staff and corrective action requires the action of all staff

5. have significant impact on the critical success factors of the organization

6. has positive impact on the organization

7. ties responsibility to the individual or team

Because KPIs have a critical impact on the success or failure of the organization, they must

emanate from the strategic goals of the enterprise and cascade throughout the organization

(Institute, 2010).

27

Page 42: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

What these KPIs are, how they relate to subscriber experience and how they are measured in

mobile networks are key in this research process and are being discussed shortly. In the

telecommunication Industry, identified parameters are used to measure critical KPIs. These

include Call Drop Rate, Call Congestion Rate, Call setup Success Rate, Call Setup Time and

SDCCH.

2.10.1. KPIs in Telecom Industry

2.10.1.1. Coverage

Coverage is normally expressed as location probability usually given as a percentage of the

coverage time; coverage is also expressed as either outdoor or indoor.

Outdoor coverage is measured by drive test equipment (Mishra, Advanced Cellular Network

Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004) using a test Phone attached to

a laptop with GPS Capability. The test phones automate a series of calls and measure a set

variables including signal strength (coverage) in dBm (Mishra, Advanced Cellular Network

Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004). Indoor coverage is measured

in much the same way except that, the measurements are done within buildings and considering

the challenges related to accessibility and speed, indoor coverage is approximated by adding a

margin for “building penetration loss”. (Mishra, Advanced Cellular Network Planning and

Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004) Coverage is measured in dBm.

2.10.1.2. Capacity

Capacity: Capacity of a network means how many subscribers can the network support, this can

be measured by ‘network blocking’ (Mishra, Advanced Cellular Network Planning and

28

Page 43: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004) . Network blocking is expressed as a

percentage of the capacity time.

Like coverage, capacity can be measured using a drive test. Capacity can also be determined by

using network statistics, which is considered as a correct picture of network blocking (Mishra,

Advanced Cellular Network Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004).

2.10.1.3. Call set-up success Rate

Call set-up success Rate: Because CSSR takes into account interference and fading and comes

closest to subscriber experience it’s also measured as a KPI. Drive test can be used to measure

CSSR but network statistics is a much accurate measure for it (Mishra, Advanced Cellular

Network Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004). CSSR is expressed

as a percentage. The counterpart of CSSR is 2G, 3G, and 2.5G networks are PDP. A good CSSR

is in average of 98 to 99%

CSSR/PDP can be affected by the subscriber’s subscription plan and could be barred or denied,

certain services, which might register as failures and contaminate networks statistics.

2.10.1.4. Dropped call rate

Dropped call rate. The termination of a call not requested by any of the parties in the call. DCR

is a characteristic of radio networks. Drop call rates can be affected by coverage, interference

and/or capacity (Mishra, Advanced Cellular Network Planning and Optimisation:

2G/2.5G/3G...Evolution to 4G, 2004). DCR can be measured using network statistics or a drive

test. Average is before 1 and 2%

29

Page 44: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.10.1.5. Call Quality

Call Quality. Call quality measurement can be services specific or independent of the service and

are classed as a measure from 0-7 with 0 being the best and 7 being the worst. It is based on the

measurement of the Bit Error Rate (BER). Voice quality of 0 comes near to land line quality, 2

and 3 have perceptible distortion , 4 has some amount of distortion conversation call still take

place at quality 5 level depending on the abilities of the parties, 6 and 7 means no useful voice

conversation is possible

2.10.1.6. Handover Success Rate

Handover Success Rate: For a user to experience a seamless call a subscriber is handed over to

the next cell when subscriber reaches the cell boundary. An extensive measurement and

signaling protocol ensures that these handover is smooth and unnoticeable by subscriber even

though sometimes handovers can fail. Handover failures can be a major cause of quality

degradation in service or may lead to call drop. Due to its importance, handover success rate is

often specified as a key performance indicator. Handover can also be triggered by other variables

such as Capacity, call quality, and mobile speed. Average handover success rate is 95% (Mishra,

Advanced Cellular Network Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004)

2.10.1.7. Call set-up time.

Call set-up time. Refers to the time it takes for a subscriber to get in to a call. It is measured from

when the subscriber presses the dial button to when the dial tone is heard. In addition, it is

measured using drive testing. Mobile to PSTN call have call set-up time of four (4) seconds and

eight (8) seconds for mobile to mobile (Mishra, Advanced Cellular Network Planning and

Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004)

30

Page 45: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.10.2. Measuring KPIs

KPIs are measured using Drive Testing and Network Statistics.

2.10.2.1. Drive Testing

The advantage of drive testing is that, the precise geographical information is available and the

testing does not depend on the vendor supplying the equipment. Drive testing is expensive,

however and limited to the availability of roads and accessible buildings in the case of indoor

coverage

2.10.2.2. Network statistics:

Events on the network such as call set-ups, handing over and call quality are counted by

counters set on the networks. Network management systems collect this data and with the help of

special reporting tools give an idea of the performance of the system as a whole. Networks

statistics gives more accurate and comprehensive picture of network performance (Mishra,

Advanced Cellular Network Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004)

2.11. Review of Research by Nimako et al, 2010

(Nimako et al,2010) conducted a research in Ghana on a similar area entitled: Overall Customer

Satisfaction in Ghana’s Mobile Telecommunication Networks: Implementations for Management

and Policy. The following section seeks to analyse and review their findings.

2.11.1. Summary of the Study

The above research sort to empirically assess and analyse overall Customer Satisfaction (CS)

with service quality delivered by Mobile Telecom Networks (MTNs) in Ghana. The researchers

sort to answer the following research questions:

31

Page 46: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

1. How can overall customer with service quality be described in Ghana’s MTNs with and

without respect to customer’s mobile telecom network

2. Do the ratings of customer satisfaction among MTNs in Ghana differ

3. Do the ratings of male and female customers regarding their satisfaction with service

delivery of MTNs in Ghana differ?

The study was a survey using structured questionnaire administered to a total of 1000 selected

subscribers from four (4) mobile telecom networks in 2008 with a response rate of 93.7%. MTNs

considered for the research included MTN, Milicom Ghana Ltd, Kasapa Telecom Ltd (now

expresso), and one touch GSM Services Ghana.

2.11.2. Findings from Nimako et al’s study

Irrespective of mobile telecom network in Ghana, all the four tools or measures pointed out that

Customer Satisfaction is low and not equal to or better than desired or expectation so the

customers are not satisfied with service quality delivered by MTNs in Ghana

The study also indicated that despite the competitive nature of the industry, some MTNs are

better placed in terms of customer satisfaction than others and that customers’ satisfaction of

service delivery differed from provider to provider.

Finally, they found and concluded that female subscribers are less satisfied as compared to their

male counterparts.

2.11.3. Concerns on Nimako et al’s Study

Much as the results obtained from Nimako et al was revealing and informative it fell short of the

following concerns.

32

Page 47: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

The sample could not have been representative of the entire subscriber population of all four

network service providers in Ghana. Using their own judgement without scientific proof for the

choice of a sample size makes it challenging to generalize the findings of the research.

Factors such as culture, level of education and income level are key in determining the

satisfaction level of individuals. Hence using a town to represent a whole zone which could

comprise different cultural persuasions could give misleading results. More so, analysing

subscriber satisfaction based on their educational level and income level could have yielded

different results compared to their conclusion.

Secondly, before coming up with the said conclusions which are only indicative of the

customer’s satisfaction, it would have been necessary to study values have been scientifically

measured such as the Key Performance Indicators (KPI) to use as a benchmark. This was lacking

in the research by Nimako et al.

In conclusion, much as Nimako et al’s results are very informative and revealing, consideration

of the above such as scientifically determining the sample size, analysing satisfaction level in

relation to educational and income levels would have increased the confidence level of their

research.

33

Page 48: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

CHAPTER THREE

RESEARCH METHODOLOGY

3.1. Introduction

In this chapter, the methodology used in the research is outlined beginning with the research

approach, followed by study of the population, sampling and sampling procedure followed by

Data collection. The Research tools and research strategy are discussed as well, Purpose of the

research and Ethical consideration is considered. The challenges of the research and issues on

plagiarism are further discussed in the chapter. The chapter concludes with methods used for

data analysis and chapter summary.

3.2. Research approach

The choice of data gathering techniques and/or tools is dependent on whether the research

process adopts an inductive or deductive theoretical approach. According to Bryman and Bell,

the deductive approach involves a clear, logical sequence of developing hypothesis from an

existing theory and subjecting it to empirical scrutiny through data gathering. The approach,

which is also referred to as theory testing is considered as the general orientation to the link

between theory and research. (Bryman & Bell, 2011)

The inductive approach on the other hand involves gathering data first and analyzing it to

develop theory. In this approach, theory is the outcome of the research as opposed to the

deductive approach where research is the outcome of theory (Bryman & Bell, 2011).

The SERVQUAL model is used as main concept to assess service quality and customer

perceived quality of service. This means that perceived customer could be measured using the

various service quality dimensions. This is because it is important to be aware of how customers

34

Page 49: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

perceived service quality in Telecommunication industries and the factors that affect these

perceptions (Daniel & Berinyuy, 2010).

This research adopts an inductive approach by first collecting relevant data from sources in the

Telecom Industry in Ghana on Key Performance Indicators (KPIs) and Customer Perceived

Quality of Service, analyzing them to formulate conclusions on the role it plays on quality of

service as far as customer.

3.3. Study Population

A population comprises all elements from which a sample is to be taken (Köhl, Magnussen, &

Marchetti, 2006) . The study (sample) population is the aggregation of population from which

the sample is actually selected (Babbie, 2012). The accessible population is the group of research

participants who are available to the researcher for participation in the research (Johnson &

Christense, 2010). According to (Turner et al,2001) it was decided that a target sample of 452

respondents should be sought . According to (Curry, 1984) using the rule of thumb, an adequate

sample of MTN subscribers of 45,200 in Greater Accra Region would be a random sample of 1%

or 452 subscribers. In the course of this research, the researcher had to contend with the

population of subscribers within the geographical area indicated in the next section due to time

and other constraints.

3.3.1. Geographical Area

In this study and for the purpose of achieving the objective of this study the target population

includes MTN subscribers in Parts of Greater Accra region including Ga East, West, and South

as shown in Figure 1 below. The total population of Greater Accra according to the Ghana

Statistical Service as at the last census in 2010 is 4,010,054 representing 16.3% (Service, 2012).

35

Page 50: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 0-3 The map of Greater Accra

3.4. Sampling and Sampling Procedure

Sampling involves examining a small portion of the total population for judging the nature or

quality of the whole population. According to Proctor, once a researcher has decided to collect

primary data, the next task is to obtain a sample of respondents that is representative of the target

population of interest (Proctor, 2005). (Saunders et al,2009) describe sampling techniques as a

mechanism that enable a research to reduce the amount of data needed for a study by considering

only data from a smaller representation of an entire population or group (Saunders et al,2009) .

According to (Saunders et al 2009) The process of selecting a sample to represent a population in

primary data collection can be based on either probability or non-probability. They describe

probability sampling as a sampling technique where the chances of each case being selected from

the population is deterministic and equal for all cases and whereas for non-probability samples ,

36

Page 51: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

the propability of each case being selected from the total population is not known and it is

impossible to answer research questions or to address objectives that require you to make

statistical inferences about the characteristics of the population (Saunders, Philip, & Thornhill,

2009)

This research has an estimated population of 45,200. By Curry’s design, the sample size of 452

is applicable.

According to (Curry, 1984) a sample size of 452 uses 1 % of the target population. This research

therefore selected 452 respondents as a sample size used in the analysis

Table 3-1 shows below.

Table 3-1 ; Population and Sampling(%) 1

Source based on Curry 1984

In this research, there will be two separate data gathering processes for the quantitative data

using interviews and questionnaires respectively. The questionnaire administered to a random

37

Page 52: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

sample (Probability) of 452 MTN subscribers in parts of Greater Accra region of Ghana. Due to

the few numbers of the technical practitioners and professionals in the area of KPI, all of them

numbering three (3) were interviewed on separate schedules.

3.1.1. Sampling size

The study population includes all MTN Subscribers within the Geographical area above. In a

similar study to determine customer satisfaction level among mobile telecom subscribers in

Ghana by Nimako et al (2010), sample size of 1000 was used out of a target population of 7.6

million (Nimako et al, 2010). In this study, a population size of 452 was used out of a target

population of 45,200 (Curry, 1984). This number was picked from Curry’s Table because it

reflects the limit of our budget and the time to distribute the questionnaire to MTN subscribers

within the study area. For this, the research is limited in scope to only MTN subscribers within

the greater Accra region with a target population of forty five thousand two hundred (45,200).

3.1.2. Proportional Sampling Techniques

This study selected 452 respondents as a sample sized used in the analysis. The detail breakdown is as follows.

Ga East 30%-136

Ga South 30%-136

Ga West 40%-180

3.2. Data Collection

In collecting data during the research process, the researcher relied on both primary and

secondary data sources. According to (Proctor, 2005), secondary data is a summary, coalition

38

Page 53: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

and/or synthesis of existing research findings previously produced by other researchers (Proctor,

2005).

Unlike secondary data, primary data is more reliable and gathered to meet the needs of the

particular research problem. Since primary data is firsthand information, it is more reliable.

Nonetheless, primary research is relatively more expensive, time consuming and generally more

difficult to conduct than secondary research (Zikmund et al,2011).

During the course of this research, secondary data was collected from FACTS. Primary data was

also gathered from subscribers in the telecom industry under study. More data was also collected

from customers that were considered as the primary beneficiaries of the systems put in place to

ensure Customer perceived quality of service was achieved. Data was collected using

questionnaires and structured interview questions.

3.2.1. Types of Data

Two types of data that can be gathered in conducting primary research include qualitative and

quantitative data. Qualitative data is widely used for research that does not have subject research

findings to quantification and is often used to examine the attitudes, feelings and motivations of

respondents/subjects. According to Proctor, qualitative data is largely used in exploratory

research to gather large amount of information/data from an amiable sample size. (Proctor, 2005)

Quantitative data is that which is quantifiable in numerical terms and often used in descriptive

research conducted through surveys. Quantitative research is easier to replicate and may require

relatively less amounts of information from a respondent. However, quantitative research is

relatively less probing, more time consuming and relatively more labor intensive to conduct.

39

Page 54: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Quantitative data was gathered in the course of this research through questionnaire and interview

sessions with practitioners and professionals in the telecom industry.

3.3. Research Tools

Tools used in the course of this research to collect involved questionnaires, interviewees and

other data gathering tools.

3.3.1. Questionnaires

A questionnaire can be described as a set of prepared questions designed to generate data

necessary from a respondent in accomplishing the objectives of a research project. This data

collection instrument is usually predetermined, standardized and structured. The questionnaire is

constructed in advance, the same questions are asked all respondents and respondents are usually

required to choose from a list of responses offered by the researcher.

The main variable in the questionnaire was customer perceived Quality of service. The objective

was to determine the customer’s perception and rating of service provided by their service

provider. According to (Shlash Mohammad & Mohammad Alhamadani, 2011) the main form of

data collection was questionnaire. The criteria developed in this study are into two sections. The

first section contains the demography of the respondents including gender, educational level,

occupation and age. The second section includes; the five constructs measuring of SERVQUAL

as proposed by Parasuraman et al. (1988). It is the instrument used to measure service quality

and the five-point Likert Scales and According to (Johnson, Gooding, Wood, Taylor, Pratt, &

Tarrier, 2010) Responses are scored on a five point scale ranging from “Strongly Disagree”,

“Disagree”, “Neutral”, “Agree”, to “Strongly Agree”. The third sections are the instrument used

40

Page 55: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

is FACTS (Fast Access Content Trend Statistics) an instrument used in gathering the KPIs from

the telecommunication industry in this case MTN.

Questionnaires enable the researcher to reach out to a larger audience over a broader

geographical area at a lower cost. It is also highly reliable because the respondents cannot alter

the answers/questions.

However, its disadvantages include the fact that it does not allow respondents to elaborate,

expand, classify and illustrate their answers. Respondents are also not allowed the chance to ask

for clarification and may misunderstand the questions, which affect the validity of the

information they give. (Proctor, 2005)

3.3.1.1. Pre-test

According to (Babbie, 2012), pretesting is the measurement of a dependent variable among

subjects. It refers to a trial administration of an instrument to identify flaws. To test the

suitability of the questionnaire and the scale to determining the feasibility of the study, a pre-test

was conducted using a pilot study include a pilot sample of 10 respondents. Pilot study is the

preliminary study of the universe to get an early idea about the study (Babbie, 2012). The pre-

test experience and the results helped in finalizing the questionnaire and to plan the process of

data collection. It also enabled the researcher to make the questionnaire more clear, predictable

and informative. The researcher also met his supervisor and had discussion with him regarding

the questionnaire and he approved it. These discussions gave a lot of insight to the researcher,

which helped in going about with the study. As a result of the pre-test and discussion, few items

that were ambiguous were deleted.

41

Page 56: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

3.3.2. Interviews

According to Saunders et al (2009), interviews could either be highly formalized and structured,

using standardized questions for each respondent or informal and unstructured conversation.

They are purposeful discussions between two or more people used for gathering valid and

reliable data that are relevant to research objectives or questions

Interviews can be structured, semi-structured or unstructured as in-depth depending on the level

of formality and structure. Structured interview involve the use of predetermined and

standardized questions referred to as interviews administered questionnaires. Semi-structured

interviews are non-standardized but have a list of themes and questions to be covered, although

they may vary from interview to interview. Unstructured interviews are informal and used to

explore in-depth a general area in the area of interest of the researcher. There is no

predetermined list of questions to work through in this situation, although the researcher needs to

have a clear idea about the aspect(s) that is to be explored (Saunders, Philip, & Thornhill, 2009)

One major advantage of interviews over questionnaires is that it allows respondents to seek

clarification if questions are not understood, leading to more appropriate and relevant responses

enhancing validity of the mechanism. On the contrary, the interviewer’s presence may influence

the respondent to give more socially accepted responses to fit the occasion.

Data on KPIs measures or strategies that are being put in place to manage KPIs and Customer

perceived quality of service through semi-structured interviews of professionals of

telecommunication industries. These interviews will be conducted face to face with a theme of

questions to guide the discussion to ensure that data gathered is relevant to the research

objectives.

42

Page 57: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

3.4. Research Strategy

Many strategies can be employed in conducting research of this kind. Experiment, survey and

case study are three of these strategies that could be employed in conducting descriptive,

explanatory and exploratory research.

Experiment is used in determining the casual relationship between two variables, whether a

change in one independent variable causes a change on other dependent variables. Experiments

are most prominent among natural scientist and tend to be used in explanatory and exploratory

research in answering the how and why questions of research problems.

Surveys is a popular strategy in business and management research used in gathering large

amounts of data from sizable populations in answering the questions of who, where, what and

how much in conducting research. Surveys are commonly associated with deductive research

and are comparatively easy to explain and understand. In surveys, data is often collected by

administering questions to a sample of a population and are often used for exploratory and

descriptive research. Surveys provide a quick, inexpensive, efficient and accurate means of

assessing information about the population. Meanwhile, they are also exposed to sampling errors

and respondent errors including; non-response, response bias and deliberate falsification.

Survey is a direct opposite of experiments because while experiments control all extraneous

variables, the boundaries between the phenomenon being studied and the context within which it

is being studied are not evident in a case study. It is often used in explanatory and exploratory

research in answering the questions of what, how and even why of a phenomenon. The primary

advantage of case study is that it pays meticulous attention to detail. It also allows the researcher

43

Page 58: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

to carefully study the order of events and concentrates on identifying the relationship between

functions.

The study used quantitative research strategy simply because it is appropriate to answer the

research questions. This strategy will permit the study to measure variables derived from the

SERVQUAL model adequately and came out with fine differences between people in terms of

assessing their perceptions about service quality. This will also give us a yardstick for making

these distinctions and provide the basis for more precise estimates of degree of relationship

between variables. This gives the research findings high reliability and validity (Daniel &

Berinyuy, 2010)

The first part of this research was a survey which was used to determine the opinion of

subscribers and their verdict on their level of satisfaction regarding issues relating to KPIs and

Customer perceived Quality of service according to their subscription plan. This was achieved by

using questionnaire as a research tool distributed using random sampling techniques.

Other quantitative data was also achieved by analysis of records obtained and achieved from

subscribers. This was reviewed and included in the results and analysis presented in chapter four.

Data was also obtained through interviews with experts in the area of Key Performance

Indicators metrics gathered to ascertain whether what has been gathered for further improvement

in quality of service to subscribers in the telecom industry in Ghana is achieved.

3.5. Purpose of Research

The classification of research purposes that are often used by researchers include: Exploratory,

Explanatory and Descriptive (Saunders, Philip, & Thornhill, 2009). In exploratory studies, the

objective is to seek new insight or find out what is happening to clarify a researchers

44

Page 59: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

understanding of a problem. These types of research normally begin with a broad focus and

narrows down as the research progresses. Explanatory studies normally seek to establish causal

relationship between two variables.

This research process employs all three perspectives as far as the purpose of research is concern.

At different levels, the research employs one of three perspectives. First is the descriptive part,

which is aimed at obtaining a clear understanding of QoS and Customer Perceived Quality of

service models and framework.

Second, the process of gathering and analyzing primary data was exploratory because it is a

process of finding out QoS trends in the Telecom Industry in Ghana by researching into existing

information and also interviewing experts in the field.

3.6. Ethical Consideration

Researcher made it a responsibility to ensure that the design research is both methodologically

sound and morally defensible to all those who are involved. (Saunders, Philip, & Thornhill,

2009)

3.6.1. Research Ethics

. The following issues were also taken in to consideration and respondents were made fully

aware;

That their identity and privacy was protected

That their participation was expected to be voluntary and that their right to withdraw at

any time was reserved

That they had to give their consent and deception was completely avoided

That their responses was treated with confidentially and anonymity

45

Page 60: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

3.6.2. Plagiarism

While being true to the original content, most of the works of others the study used are

paraphrased by the researcher to suit the study and acknowledgement given accordingly.

3.7. Challenges of the Research

Below were some potential challenges, how they affected the outcome of the research and how

best they were controlled.

1. There was a challenge with getting access to interviewees from expert in the KPIs in

MTN.

2. There were likely to be challenges with getting up to 452 respondents to complete the

questionnaires within the limited period for the dissertation. Therefore, the researcher

seeked assistance from Skype, Google drive and other relevant technological tools in

order to help with administering the questionnaires. Some respondents were also likely

not to respond and return the questionnaire due to their nature of work.

3. The cost of lengthy phone call in conducting interviews will also have posed financial

challenge. Therefore, the research conducted the interviews on Skype, Google drive, and

other media where the interviewee was willing to help reduce cost.

3.8. Chapter Summary

The study used questionnaire to collect data by conducting a continuous investigation of Key

Performance Indicators and their relationship with Customer perceived Quality of Service

provided to mobile subscribers. The primary data analyzed are Customer perceived Quality of

Service provided to subscribers.

46

Page 61: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Scholarly journal articles and books on Key Performance Indicators and Customers Perceived

Quality of Services in telecommunication, network quality of service were reviewed

The study examines the relationship between KPIs and Customer perceived quality of service for

mobile subscribers. Data will be observed from two main sources in order to obtain the necessary

grounds to draw conclusions and/or provide suggestions. The first source is the network

providers and the second being users/ subscribers. Data collected from the network provider will

be computational data such as Key Performance Indicators (KPIs). This data was gathered

through review of existing records/data and interviews with relevant stakeholders such as

engineers and customer service officers. Data collected from users included subjective user

experiences obtained through surveys through the distribution of questionnaires and interviews.

The research adopted a descriptive approach to research methods. Data collection was achieved

through the use of survey questionnaires distributed randomly at selected locations across the

capital. A total sample size of 452 questionnaires will be distributed with an optimistic return

rate of 99% expected to be achieved.

Excel and SPSS was employed extensively in analyzing data. Other tools such as Microsoft

draw, calculators and Google drive will be employed to assist in data analysis as well where

necessary.

47

Page 62: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4. Introduction

4.1. Data Analysis

In order to investigate the subject under study, the research sourced information from two main

sources. These included administering questionnaires to target respondents and KPIs records

over the same period under review. Hence, the chapter is divided conceptually into two sections

with the first part attempting to describe the distribution of the target population. The second

section attempts to establish the relationship between the customers perceived quality of services

and data gathered by the operator also known as the Key Performance Indicators

The first objective of the study was to gather information relating to subscribers’ perceived

Quality of Service (QoS).

The second objective was to make presentation and analysis of data obtained from the operator

(MTN).

4.2. Response Rate

With a research population of about Forty Five Thousand Two Hundred (45,200), In this study,

a population size of Four Hundred and Fifty Two (452) was used out of a target population of

45,200 (Curry, 1984) constituting 1% of the target population.

48

Page 63: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Four Hundred and fifty two (452) questionnaires were administered to MTN subscribers in the

Greater Accra Region. Four Hundred and fifty two (452) responses were received within the

period of one Month , out of which 452 were considered.

The response rate for the survey was hundred (100%). Therefore the actual responses used for

this analysis was one hundred percentage (100%) .

4.3. DEMOGRAPHIC ANALYSIS OF RESPONDENTS

4.3.1. Distribution by Sex

Out of the 452 respondents, 52.21% were male and the remaining 47.79% were females

49

Page 64: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4.1.Table 4-2 Table Showing Respondents by Sex

Gender Respondents PercentageMale 236 52.21Female 216 47.79TOTAL 452 100.00

Gender Respondents PercentageMale 236 52.21Female 216 47.79TOTAL 452 100.00

Male52%

Female48%

Gender Distribution of Respondents

Figure 4-4 Pie Chart Showing Distribution of Respondents by Sex

4.3.2. Age Distribution of Respondents

The Figure 4.2 below represents the age range of respondents. Majority of the respondents

representing 40.71% of the respondents were between 21 and 30 years old while 8% of the

respondents were 20 years and below. Thirty eight percent (38%) of the respondents aged

between 31 and 40 years old. Thirteen percent (13%) were 40 years above.

50

Page 65: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Table 4-3 Showing the Distribution of Respondents by Age

Description Respondents Percentage20 and Below 36 7.9621-30 184 40.7131-40 172 38.05Above 40 60 13.27Total 452 100.00

Description Respondents Percentage20 and Below 36 7.9621-30 184 40.7131-40 172 38.05Above 40 60 13.27Total 452 100.00

20 and Below8%

21-3041%

31-4038%

Above 40

13%

Age Distribution of Respondents

Figure 4-5 Showing the Distribution of Respondents by Age

4.3.3. Occupation Distribution of Respondents

Out of the 452 respondents, 33.63% were public/civil servants, 25.66% were private sector

workers and students made up of 21.24% .The rest were Business Persons (non-formal workers)

making up the remaining 19.47% (Table 4.3. and Figure 4.3.).

51

Page 66: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Table 4-4 Occupation Distribution of Respondents

Occupation Respondents PercentageStudent 96 21.24Business Person 88 19.47Public Servant/Civil Servant 152 33.63Private Sector 116 25.66TOTAL 452 100.00

Occupation Respondents PercentageStudent 96 21.24Business Person 88 19.47Public Servant/Civil Servant 152 33.63Private Sector 116 25.66TOTAL 452 100.00

Student21%

Business Person19%

Public Servant/Civil Ser-

vant34%

Private Sector26%

Occupation Distribution of Respodents

Figure 4-6 Occupation Distribution of Respondents

4.3.4. Income Bracket Distribution of Respondents

Figure 4.4 below shows the income bracket distribution of the respondents. 39.82% earned

500GHS and below. 30.97 % earned above 1000 GHS and 17.7% earned between 500 and 1000.

The remaining 11.50 % did not specify their income levels.

52

Page 67: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Table 4-5. Income Bracket Distribution of Respondents

Income Bracket Respondents Percentages500 and Below 180 39.82500-1000 80 17.70Above 1000 140 30.97Not applicable 52 11.50TOTAL 452 100.00

Income Bracket Respondents Percentages500 and Below 180 39.82500-1000 80 17.70Above 1000 140 30.97Not applicable 52 11.50TOTAL 452 100.00500 and Below

40%

500-100018%

Above 100031%

Not applicable12%

Income Level Distribution of Respondents

Figure 4-7 Income Bracket Distribution of Respondents

4.3.5. Education Level Distribution of Respondents

Figure 4.5 below shows the Educational Level distribution of the respondents. Out of 452

respondents, 67.26% were in tertiary, 13.27% were from SHS, 8.85% were from Post SHS level,

7.96% were from JHS level and the remaining 2.65% recorded None (Table 4.5. and Figure

4.5.).

53

Page 68: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Table 4-6 Education Level Distribution of Respondents

None 12 2.65JHS 36 7.96SHS 60 13.27Post SHS 40 8.85Tertiary 304 67.26TOTAL 452 100.00

None 12 2.65JHS 36 7.96SHS 60 13.27Post SHS 40 8.85Tertiary 304 67.26TOTAL 452 100.00

3%8%

13%

9%

67%

Education Level Distribution of Respondents

12345

Figure 4-8 Education Level Distribution of Respondents

4.3.6. Distribution of Respondents by Subscription Plan

Figure 4.6 below shows the subscription plan of the respondents. Out of a total respondents of

452, 84.07% were prepaid subscribers whilst the remaining postpaid subscribers respondents

were 15.92% (Table 4.6. and Figure 4.6.).

54

Page 69: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Table 4-7 Distribution of Respondents by Subscription Plan

Suscription Plan Respondents PercentagePrepaid 380 84.071Postpaid 72 15.929TOTAL 452 100.000

Suscription Plan Respondents PercentagePrepaid 380 84.071Postpaid 72 15.929TOTAL 452 100.000

Prepaid84%

Postpaid16%

Suscription Plan Distribution of Respondents

Figure 4-9 Distribution of Respondents by Subscription Plan

4.4. Subscriber Perceived Quality of Service

The subscriber perceived Quality of Service (QoS) is assessed using the SERVQUAL Model

4.4.1. Research Questionnaire 1: It is easier to place a call using MTN. (Call setup

Success Rate)

The purpose of this question was to sort the subscribers perception on call setup success rate

(CSSR) using the MTN network. Call Setup Success Rate refers to the time it takes for a

subscriber to get in to a call (Mishra, Advanced Cellular Network Planning and Optimisation:

2G/2.5G/3G...Evolution to 4G, 2004).

55

Page 70: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Out of 452 respondents 60.2% said, it was easier to place a successful call on MTN. However,

120 respondents representing 26.6% of the total respondents said placing successful calls on the

network was not successful.

Figure 4.7 shows that Call setup success rate was largely successful since a mean of 3.40 is

showing positive responds

Table 4-10 Subscriber Perception on Call Setup Success Rate

It is easier to place a call using MTN(CSSR)

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree

36 7.8 8.0 8.0

Disagree 84 18.1 18.6 26.5

Neutral 60 12.9 13.3 39.8

Agree 208 44.8 46.0 85.8

Strongly Agree 64 13.8 14.2 100.0

Total 452 97.4 100.0

Missing System 12 2.6

Total 464 100.0

56

Page 71: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-7 Subscriber Perception on Call Setup Success Rate

4.4.1.1. CSSR Statistics from Network Provider (KPI)

Over the same period under review, network statistics (secondary data) shows that, an average of

99.38% of calls generated over the Second Generation (2G) network and 99.37 of calls generated

over the Third Generation network within the network were largely successful.

Juxtaposing the responses with the results obtained from the network provider using network

statistics as shown in the table below, it indicates that over the same period under study the

average CSSR for both 2G and 3G was 99.37 (Figure 4.8).

57

Page 72: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

December Jan Feb March

2G Results 99.4 99.27 99.46 99.39

3 G Results 99.45 99.29 99.44 99.29

Average 99.43 99.28 99.45 99.34

90.591.592.593.594.595.596.597.598.599.5

CSSR Statistics From Network ProviderP

erce

nta

ge o

f C

SS

R

Figure 4-11 CSSR Statistics from Network Provider

4.4.1.2. Relationship between Subscriber Perception and Network Statistics

on CSSR

With an industry standard for CSSR being within an average of 98 and 99%, it can be established

that the majority (60.2%) of subscribers have a perception that CSSR largely correlate that it is

easier to place a call using MTN from the network statistics report.

(26.6%) however said that, the network statistics report confirms the minority group of

respondents indicated that CSSR was bad under the period of study.

3.40 mean shows largely that the subscriber perception on call set up success rate was successful.

58

Page 73: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.4.2. Research Questionnaire 2: Calls are successful to the end of the call. (Call

Drop Rate)

Call Drop Rate (CDR) refers to the termination of a call not requested by any of the parties in the

call (Mishra, 2004). The purpose of this question was to determine the perception of the

subscribers on placing a call and staying on the call until the end of the conversation.

As with CDR, 56.7% of the respondents agreed that calls remain active to the end of the

conversation while 31.9% disagreed. (Table 4.10.)

This generated a mean of 3.23 from Figure 4-10. It can therefore be concluded that majority of

the respondents 56.7% are satisfied with calls that are successful to the end of the call.

Table 4-12 Subscriber Perception of CDR

All calls placed stay active until the end of the call (CDR)

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree

40 8.6 8.8 8.8

Disagree 104 22.4 23.0 31.9

Neutral 52 11.2 11.5 43.4

Agree 224 48.3 49.6 92.9

Strongly Agree 32 6.9 7.1 100.0

Total 452 97.4 100.0

Missing System 12 2.6

Total 464 100.0

59

Page 74: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-13 Subscriber Perception of CDR

4.4.2.1. CDR Statistics from the Network Provider

Data from the network statistics obtained for CDR from the network operator as presented below

revealed that the CDR over the period under review averages for 2G 1.56% and 0.86 for 3G and

a total average of 1.11.

60

Page 75: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

December Jan Feb March

2G Results 1.41 1.32 1.31 1.38

3 G Results 0.94 0.80 0.80 0.89

0.5

1.5

CDR Statistics From Network Service ProviderCD

R

Figure 4-14 CDR Statistics from Network Service Provider

4.4.2.2. Relationship between Subscriber Perception and Network Statistics

on CDR

Industry standards for CDR according to Mishra are between 1 and 2% (Mishra,2004).

According to the NCA, CDR in Ghana should be =<3%. However, network statistics report

indicates that the network CDR (1.11%) falls within recommended standards and supports the

56.7% of respondents who said calls remain active throughout the conversation.

The trends revealed by both the subscriber perception and network statistics are that network

statistics on CDR correlate with the subscriber perception of calls are successful to the end of the

call. This generated a mean of 3.23 from the Figure 4-10. It can therefore be concluded that

majority of the respondents representing 56.7% are satisfied with success of calls.

61

Page 76: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.4.3. Research Questionnaire 3: The Network is always available. (Network

Capacity)

Network capacity means the number of subscribers the network can support (Mishra, 2004). A

higher capacity indicates that the network can support a larger number of subscribers and the

opposite is true.

The survey revealed that 45.1% of the respondents said that the network is always available

indicating a high capacity of the network for the existing number of subscribers during the period

under review. However, 36.3% of the respondents disagreed about the network capacity

Table 4.11.

This generated a mean of 3.11 from Figure 4.11.It can therefore be concluded that majority of

the respondents 45.1% agreed with capacity of the network is always available.

Table 4-11 Subscriber Perception of Network Capacity

The network is always available(Capacity)

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree

48 10.3 10.6 10.6

Disagree 116 25.0 25.7 36.3

Neutral 84 18.1 18.6 54.9

Agree 148 31.9 32.7 87.6

Strongly Agree 56 12.1 12.4 100.0

Total 452 97.4 100.0

Missing System 12 2.6

Total 464 100.0

62

Page 77: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-15 Subscriber Perception of Network Capacity

4.4.3.1. Network Capacity for Network Statistics

For the same period under review Network statistics shows an average of 61194.31 Figure 4.13.

A detailed review of the network capacity statistics shows that in January, the capacity of the

network increased from 60386.01 to 61193, which subsequently dropped to 60688.40 in

February 2014. In March however, the capacity increased to 62509.81.

63

Page 78: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

December Jan Feb March

2G Results 60386.01 61193.00 60688.40 62509.81

59250.00

59750.00

60250.00

60750.00

61250.00

61750.00

62250.00

62750.00

Network Capacity Statistices From Network Service ProviderP

erce

nta

ge o

f N

etw

ork

Cap

acit

y

Figure 4-16 Network Capacity Statistics from Network Service Provider

4.4.3.2. Relationship of Subscriber Perception on Network Capacity to

Network Statistics

The perception of the subscriber will be determined by the period within which the subscriber is

basing his/her judgment on the availability/capacity of the network. However, averagely, the

network capacity of 61194.31 over the period could affect the availability of the network to the

subscriber and thus influence their perception either positively or negatively depending on the

number of subscribers at the location under review during the period.

This generated a mean of 3.11 from the graphical representation above Figure 4-12. It can

therefore be concluded that majority of the respondents representing 45.1% largely agreed that

capacity is good.

4.4.4. Research Questionnaire 4: The quality of the call good enough (Quality)

Even though call quality can be independent of the service provider as call quality is affected by

extraneous factors such as the environment, terrain and the weather, the subscriber still measures

64

Page 79: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

call quality as a service provided by the network provider. Call quality is classed as a measure

from 0 through to 7 Bit Error Rate (BER) with 0 being the best and 7 being the worse.

Majority of the respondents (40.7%) rated the network under review disagreed while 36.9%

agreed (Table 4.14. Figure 4.15)

This generated a mean of 2.94 from Figure 4.15. . It can therefore be concluded that majority of

the respondents (40.7%) disagreed that the perception of the network call quality is poor.

Table 4-17 Subscriber Perception on Call Quality

The service provides quality for money (Call quality)

Frequency Percent

Valid Percent

Cumulative Percent

Valid Strongly Disagree

32 6.9 7.1 7.1

Disagree 152 32.8 33.6 40.7

Neutral 101 21.8 22.3 63.1

Agree 147 31.7 32.5 95.6

Strongly Agree 20 4.3 4.4 100.0

Total 452 97.4 100.0

Missing System 12 2.6

Total 464 100.0

65

Page 80: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-18 Subscriber Perception on Call Quality

4.4.4.1. The Network Statistics on Call Quality

Results from Network Statistics obtained from the network operator indicated an average of 4.72

BER. It reveals that the network services has not been of best quality as a standard indicates that

an average of 4 BER comes with an amount of conversation distortions (Mishra, 2004) .

66

Page 81: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

December Jan Feb March

Results 9.77 3.18 2.97 2.95

0.51.52.53.54.55.56.57.58.59.5

BER Statistics From Network Service ProviderBi

t Er

ror

Rate

Figure 4-19 BER Statistics from Network Service Provider

4.4.4.2. Relationship between Subscriber Perception and Network Statistics

on Call Quality

The network statistics result confirms the majority of the respondents (40.7%) perception that the

network quality over the period under review was unsatisfactory. The trend suggested that

subscriber perceptions relating to call quality can be used as a true determinant of call quality. It

can also be suggested that network call quality of the network under review has been largely of

poor quality during the period under review, this can be correlated by the graphical

representation of the mean of 2.94 signifying that subscriber perception of call quality is poor.

4.4.5. Research Questionnaire 4: The network is available everywhere in Ghana

(Coverage)

The purpose of this survey question was to determine the subscriber’s perception of the

availability of the network under review within a certain geographical area. Coverage is the

67

Page 82: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

geographical area in which a wireless network provider offers cellular service for mobile phone

subscribers.

Out of the 452 respondents, 61.0% said the network under review largely agreed that coverage in

the geographical area of the research is good, while 31.0% disagreed that the network is not

available everywhere in Ghana. Figure 4.12.

Since, the network under review does not measure or keep statistics on coverage, the researcher

relied solely on the subscribers’ perception on coverage. The mean of 3.35 from the graphical

representation (Fig 4-18) under this review largely agreed that the network is available

everywhere in Ghana.

Table 4-20 Subscriber Perception on Network Coverage

The network is available everywhere in Ghana(Coverage)

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree

52 11.2 11.5 11.5

Disagree 88 19.0 19.5 31.0

Neutral 36 7.8 8.0 38.9

Agree 200 43.1 44.2 83.2

Strongly Agree 76 16.4 16.8 100.0

Total 452 97.4 100.0

Missing System 12 2.6

Total 464 100.0

68

Page 83: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-21 Subscriber Perception on Network Coverage

69

Page 84: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.4.6. Research Questionnaire 5: The customer Service is readily available and are

always willing to assist

This question sort to determine the subscriber perception on the quality of customer service

offered by the network under review.

The results revealed from Table 4.19 that majority of the subscribers (49.6%) perceives the

customer service of the network service provider are unwilling to assist subscribers while 35.3%

think the customer service is good . The Figure 4.20.

This generated a mean of 2.82 (Figure 4.20). It can therefore be concluded that majority of the

respondents (49.6%) agreed that customer service provided by customer service is poor.

Table 4-22 Subscriber Perception on Customer Service

The Customer service is readily available and are always willing to assist

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree

56 12.1 12.4 12.4

Disagree 168 36.2 37.2 49.6

Neutral 68 14.7 15.0 64.6

Agree 120 25.9 26.5 91.2

Strongly Agree 40 8.6 8.8 100.0

Total 452 97.4 100.0

Missing System 12 2.6

Total 464 100.0

70

Page 85: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-23 Subscriber Perception on Customer Service

4.4.7. Research Questionnaire 6: I will recommend the network to another person

The purpose of this research question was to sort for the overall perception of the subscriber on

the network under review. 46.0% of the subscribers said overall they were likely to recommend

the network to others while 34.5% said they would not recommend others to use the network

services Table 4.21 and from Figure 4-22 with a mean of 3.06 subscribers are largely likely to

recommend the network to another person.

71

Page 86: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Table 4-24 Subscriber's Willingness to recommend the Network Service Provider

I will recommend MTN to another person

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree

52 11.2 11.5 11.5

Disagree 104 22.4 23.0 34.5

Neutral 88 19.0 19.5 54.0

Agree 180 38.8 39.8 93.8

Strongly Agree 28 6.0 6.2 100.0

Total 452 97.4 100.0

Missing System 12 2.6

Total 464 100.0

72

Page 87: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Figure 4-25 Subscriber's Willingness to recommend the Network Service Provider

DISCUSSION OF RESULTS

4.4.8. Research Question One: What criteria is used in measuring customer

perception of Quality of Service (QoS).

Guided by this question, the study sort to understand the criteria involved in measuring QoS

from the subjective perception of subscriber. SERVQUAL as the single most reliable method of

measuring customer’s perception of quality is extensively used in the course of the research.

Thus, guided by this principle, the questionnaire was fashioned to take care of the various tenets

of SERVQUAL while adapting it to meet the other aspects of the research objective.

73

Page 88: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.4.9. Research Question Two: What KPIs are monitored by the Network Service

Providers

The next part of the study was to determine KPIs used by network service provider in

determining the Quality of the service provided to subscribers. The answer to this question was

achieved during interview sessions with professionals in the industry and secondary data

obtained from the operator. The following sections reports on the various trends and

relationships observed on each of the KPIs monitored by the network service providers.

1. CSSR: used to measure or determine successful call setups over a period.

2. CDR: used to determine call drop rate

3. Handover Success Rate: is used to experience a seamless call a subscriber is handed over

to the next cell when subscriber reaches the cell boundary.

4. Call Quality: Used to measure the quality of voice calls during a call session

5. Coverage: Used to measure area within which network service is available to subscribers

6. Capacity: Used to measure the number subscribers in the network can support measured

by network blocking

These KPIs are routinely monitored by the network service provider using two measuring

techniques namely drive tests and network statistics.

4.4.10. Does KPIs measurements correlate with customer perceptions of Quality

The trends observed from data obtained from both primary and secondary data revealed a general

direct correlation between subscriber perceptions and the results obtained from the network

operator. The following section enunciates these correlations individually.

74

Page 89: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

CSSR – The study revealed that there is a strong correlation between KPI measurement of CSSR

and subscriber perception on call set up quality. The assertion is supported by the fact that

99.38% of 2G and 99.37% of 3G call setups were generally successful which falls within the

standard of 98 and 99% these measurement also agreed by a majority of respondents (60.18%)

and a mean of 3.40 showing that majority of the respondents agreed that CSSR was largely

successful.

CDR – There is a strong relationship between subscriber perceptions and KPI readings obtained

from network statistics and drive test results. Industry standards are between 1 and 2% to which

the network recorded 1.11% average. This means the network recorded a good call drop rate,

which was supported by majority of the respondents (56.7%) and a mean of 3.23 showing that

majority of the respondents agreed that CDR was largely successful.

Capacity- There is a strong relationship between subscriber perceptions and KPI readings

obtained from network statistics results. Majority of the respondents (45.1%) recorded a good

network availability, this is largely been backed by a mean of 3.11 showing that majority of the

respondents agreed that the capacity is good

Call Quality – The study showed that the relationship between the call quality network statistics

and the subscriber’s perception of quality of calls could be clouded by other factors which is

beyond the scope of this research. Even though majority (40.7%) of the respondents said the call

quality over the period was bad, 36.9% thought otherwise. The near splits of perceptions

correlate the network statistics results, which indicated an average of 4.72 BER, which false

short of an average standard of 7 BER (Mishra, Advanced Cellular Network Planning and

Optimisation: 2G/2.5G/3G...Evolution to 4G, 2004). Starting from 9.77 BER and dropping to

75

Page 90: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

2.95 BER in March 2014, the near split of opinions on call quality can be associated with the

quality recorded over the period. This does not affect the conclusion that the results obtained

from network statistics and drive test does not influence subscriber perceptions on call quality.

The mean of 2.94 narrowly shows that the perception of call quality is poor.

On Network Coverage, majority of the respondents agree largely that the network under review

has good coverage within the area under review. This perception was distributed by 61.0% of the

respondents representing the majority under study confirmed good network coverage whilst 31.0

respondent otherwise. This study under review revealed that a mean of 3.35 was realized and

largely showed that network coverage under the study was largely good.

The perception of the respondents on customer service of the network service provider under

study is that the customer service offered to subscribers is largely poor. This perception was

shared by 49.6% of the respondents representing a majority of the entire 452 respondents in the

study as against 35.3% who think otherwise. A mean of 2.82 of the respondents largely

perceived that customer service was not readily available.

The final intervening question in the questions had the objective of obtaining the general

perception of the respondents on the network under review. Majority of the respondents (46.0%)

said they were likely to recommend the network to others while 34.5% think otherwise. A mean

of 3.06 under study of the respondents largely recommend MTN to other subscribers.

76

Page 91: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.5. Chapter Summary

Analysis of the research results both primary from the survey and interviews conducted as well

as data obtained from secondary sources such as the data on network statistics and drive tests

results were discussed in the chapter.

In the course of the chapter, data was analyzed for trends and relationships as well as reasons for

such relationships.

Primary data was obtained with the assistance of a questionnaire and interviews. Secondary data

was obtained from the network’s routine network statistics reports and drive test results. These

three sources of data served as the bases of all trends, relationships, conclusions and subsequent

recommendations made in the course of the research.

77

Page 92: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

4.6. SUMMARY

This study “The relationship between Key Performance Indicators (KPIs) of Mobile Service

Providers and Customer Perceived Quality of Service (QoS)” sort to determine and establish the

relationship between subscriber perception on the quality of service and the various KPIs

monitored by the network service provider.

The study began with an introduction and thorough investigation into the architecture of mobile

telecommunication technologies. It was sectioned into five chapters beginning with chapter one

where background of the study, problem statement and justification for the research study was

presented. Other Relevant aspects of the research including the objectives, purpose and research

questions were established in chapter one as well. In chapter two, review of relevant literature

relating to the subject areas was elaborately done. Areas discussed included a review of past

studies of peer-reviewed journals on mobile network technologies including the generations and

architecture of mobile telecommunications networks. The methodologies used in the research

study were discussed in chapter three. The research made use of an appropriate data collecting

instruments such as questionnaires and, interviews. Desk review of secondary data and existing

reports were also used. Data obtained using these techniques were carefully reviewed and

analyzed in chapter four.

The study among other things sort to answer the following questions

78

Page 93: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

What is the criteria for measuring customer’s perception of Quality of Service (QoS) of

telecom mobile services

What Key Performance Indicators are used by the Telecom Providers to measure Quality

of Service

Does Key Performance Indicator measurements correlate the customer’s perception of

Quality of service (QoS).

A survey, which involved a set of questions, organized into a structured questionnaire were

administered using a random sampling technique in the area under review was done to serve as a

source of primary data for review purposes. The area under review included suburbs in the

greater Accra region of Ghana specifically in the Ga East, West and South.

The criteria for selecting respondents required that respondents should be MTN subscribers and

of the age capable of understanding the questions and answering them accordingly.

Interview sessions with professionals also helped the researcher to understand basic concepts in

the subject area. Professionals included were those directly involved in the measurement and

analysis of KPIs. Three (3) professionals were interviewed in three (3) separate sessions.

Secondary data from routine network statistics and drive tests were also analyzed and served as

the bases for all comparative analysis carried out.

79

Page 94: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.7. CONCLUSION

By the end of the research project and based on trends and relationships observed from data

available at the disposal of the researcher, the following conclusions were arrived. Using the

initial research questions discussed in chapter one of this report.

Question 1:What is the criteria for measuring customer’s perception of Quality of Service (QoS)

of telecom mobile services ?

SERVQUAL as the single most reliable method of measuring customer’s perception of quality is

extensively used in the course of the research. Thus, guided by this principle, the questionnaire

was fashioned to take care of the various tenets of SERVQUAL while adapting it to meet the

other aspects of the research objective.

Question 2:What Key Performance Indicators are used by the Telecom Providers to measure

Quality of Service ?

The following sections reports on the various trends and relationships observed on each of the

KPIs monitored by the network service providers.

1. CSSR: used to measure or determine successful call setups over a period.

2. CDR: used to determine call drop rate

3. Handover Success Rate: is used to experience a seamless call a subscriber is handed over

to the next cell when subscriber reaches the cell boundary.

4. Call Quality: Used to measure the quality of voice calls during a call session

80

Page 95: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

5. Coverage: Used to measure area within which network service is available to subscribers

6. Capacity: Used to measure the number subscribers in the network can support measured

by network blocking

These KPIs are routinely monitored by the network service provider using two measuring

techniques namely drive tests and network statistics.

Question 3:Does a Key Performance Indicator measurement correlate the customer’s perception

of Quality of service (QoS).

CSSR – The study revealed that there is a strong correlation between KPI measurement of CSSR

and subscriber perception on call set up quality.

The assertion is supported by the fact that 99.38% of 2G and 99.37% of 3G call setups were

generally successful which falls within the standard of 98 and 99% these measurement also

agreed by a majority of respondents (60.18%) and a mean of 3.40 showing that majority of the

respondents agreed that CSSR was largely successful.

CDR – There is a strong relationship between subscriber perceptions and KPI readings obtained

from network statistics and drive test results. Industry standards are between 1 and 2% to which

the network recorded 1.11% average. This means the network recorded a good call drop rate,

which is supported by majority of the respondents (56.7%) and a mean of 3.23 showing that

majority of the respondents agreed that CDR was largely successful.

Capacity- There is a strong relationship between subscriber perceptions and KPI readings

obtained from network statistics results. Majority of the respondents (45.1%) recorded a good

81

Page 96: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

network availability, this is largely been backed by a mean of 3.11 showing that majority of the

respondents agreed that the capacity is good

Call Quality – The study showed that the relationship between the call quality network statistics

and the subscriber’s perception of quality of calls can be clouded by other factors which is

beyond the scope of this research. Even though majority (40.7%) of the respondents said the call

quality over the period was bad, 36.9% thought otherwise. The near splits of perceptions

correlate the network statistics results, which indicated an average of 4.72 BER, which false

short of an average standard of 7 BER (Mishra, 2004). Starting from 9.77 BER and dropping to

2.95 BER in March 2014, the near split of opinions on call quality can be associated with the

quality recorded over the period. This does not affect the conclusion that the results obtained

from network statistics and drive test do influence subscriber perceptions on call quality. The

mean of 2.94 shows that the perception of call quality is poor.

On Network Coverage, majority of the respondents agree largely that the network under review

has good coverage within the area under review. This perception was distributed by 61.0% of the

respondents representing the majority under study confirmed good network coverage whilst 31.0

respondent otherwise. This study under review revealed that a mean of 3.35 was realized and

was largely showed that network coverage under the study was largely good.

The perception of the respondents on customer service of the network service provider under

study is that the customer service offered to subscribers is largely poor. This perception was

shared by 49.6% of the respondents representing a majority of the entire 452 respondents in the

study as against 35.3% who think otherwise. A mean of 2.82 of the respondents largely

perceived that customer service was not readily available.

82

Page 97: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

The final question in the questions had the objective of obtaining the general perception of the

respondents on the network under review. Majority of the respondents (46.0%) said they were

likely to recommend the network to others while 34.5% think otherwise. A mean of 3.06 under

study of the respondents largely recommend MTN to other subscribers.

83

Page 98: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

4.8. Recommendations

The researcher admits that, the study did not involve the entire subscriber base of the network

under review; it might not necessarily provide the bases for conclusions on the performance of

the network service provider. Hence future research should consider expanding the population

and /sample size.

The study was also limited in scope to only one network service provider. To get a true reflection

of the subject area, future research should include the other five network service providers in the

study. This will also reduce biases introduced by subscribers having multiple SIM cards

The network providers should not limit the assessment of quality of service to the measurement

of KPIs which measurement is on the cell level, rather they should get tools that can measure

individual subscribers using subscribers Mobile Station – ISDN (MSISDN), they should consider

getting feedback from their subscriber since their perceptions on quality can serve as a guide to

improve the quality of services rendered to subscribers, this also applies to the regulators. Instead

of relying on equipment and measurement devices, regulators should also consider carrying out

random survey to solicit for subscriber perceptions on the quality of service rendered to

subscribers

It is also recommended that the network provider should consider reviewing their customer

service department

Finally, this research is not conclusive as it relies largely on subscriber perceptions and historical

(secondary data) from the network operators. Future researchers should consider participating in

KPI measurements to get first hand primary data from which inferences should be made.

84

Page 99: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Appendix I : Questionnaires

Section A. Demographic Information

AGE Distribution

o 20 and below

o 21-30

o 31-40

o Above 40

Sex

o Male

o Female

o Other

Occupation

o Student

o Business Person

o Public Servant/Civil Servant

o Private Sector

Income Bracket

o 500 and Below

o 500-1000

o Above 1000

o Not applicable

85

Page 100: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Education Level

o None

o JHS

o SHS

o Post SHS

o Tertiary

Your Subscription Plan

o Prepaid

o Postpaid

How long have you been using MTN account

o Under 1 year

o 1-5 years

o 5-10 years

o Above 10 years

86

Page 101: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Section B: Customer Perceived Quality of Service using SERVQUAL Model

1. Research Questionnaire 1 .It is easier to place a call using MTN(Call setup Success

Rate)

o Strongly Agree

o Agree

o Neutral

o Disagree

o Strongly Disagree

2. Research Questionnaire 2 . All calls placed stay active until the end of the call (Call

Drop Rate)

o Strongly Agree

o Agree

o Neutral

o Disagree

o Strongly Disagree

3. Research Questionnaire 3. The network is always available (Congestion Rate)

o Strongly Agree

o Agree

o Neutral

o Disagree

o Strongly Disagree

4. The customer Service is readily available and are always willing to assist

87

Page 102: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

o Strongly Agree

o Agree

o Neutral

o Disagree

o Strongly Disagree

5. The network is available everywhere in Ghana (Coverage)

o Strongly Agree

o Agree

o Neutral

o Disagree

o Strongly Disagree

6. The service provides quality for money (Call quality)

o Strongly Agree

o Agree

o Neutral

o Disagree

o Strongly Disagree

7. I will recommend MTN to another person

o Strongly Agree

o Agree

o Neutral

o Disagree

88

Page 103: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

o Strongly Disagree

Bibliography

Adrenalin Media. (2012). GHANA CHAMBER OF TELECOMMUNICATIONS M-Powering People . Simpacting Lives. Retrieved April 15, 2014, from http://www.telecomschamber.org/: http://www.telecomschamber.org/

Andelin, J., Garcia, L., & Clair, K. S. (1992, March). Global Standards: Building Blocks for the Future. Retrieved April 20, 2014, from http://www.strategicstandards.com/files/GlobalStandards.pdf: http://www.strategicstandards.com/files/GlobalStandards.pdf

Antony, Oodan; Keith, Ward; Catherine, Savolaine; Mahmoud, Daneshmand; Peter, Hoath. (2009). Telecommunications Quality of Service Management. IET.

Arokiamary, V. J. (2009). Cellular and Mobile Communication. Technical Publications .

Babbie, E. (2012). The practice of social research. Cengage Learning.

Brennan, B., Fleck II, J., & van der Meer, S. ( Dec 23, 2010). Modelling Autonomic Communication Environments: 5th IEEE International Workshop, MACE 2010, Niagara Falls, Canada, October 28, 2010, Proceedings. Springer.

Broadersen, D. J. (2008). Predictors of peer Leader success as strengths counsellors in a First-year seminar. ProQuest.

Bryman, A., & Bell, E. (2011). Business Research Methods 3e. OUP Oxford.

Business Ghana. (2014, April 02). Business Ghana. Retrieved April 15, 2014, from http://www.businessghana.com/portal/index.php: http://www.businessghana.com/portal/index.php

Commision, N. C. (2013, December 16). Nigerian government to prosecute telecom providers for poor service delivery- Minister. Retrieved April 15, 2014, from http://www.premiumtimesng.com/news/151566-nigerian-government-prosecute-telecom-providers-poor-service-delivery-minister.html: http://www.premiumtimesng.com/news/151566-nigerian-government-prosecute-telecom-providers-poor-service-delivery-minister.html

Craighead, G. (2009). High-Rise Security and Fire Life Safety. Butterworth-Heinemann.

89

Page 104: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Curry, J. (1984). Populations and Sampling; Sample Size Rule of Thumb. Retrieved April 20, 2014, from http://www.napce.org/documents/research-design-yount/07_Sampling_4th.pdf: http://www.napce.org/documents/research-design-yount/07_Sampling_4th.pdf

Daniel, C. N., & Berinyuy, L. P. (2010). Using the SERVQUAL Model to assess Service Quality and Customer Satisfaction. Spring semester.

Eren, H. (2005). Wireless Sensors and Instruments: Networks, Design, and Applications. CRC Press.

Heskett, J. L., Sasser, W. E., & Schlesinger, L. A. (1997). Service Profit Chain. Simon and Schuste.

Institute, E. T. (2010). Telecommunication System (UMTS); LTE ; Telecommunication Management; KPI for UMTS and GSM(3GPP TS 32.410 Version 9.0.0 Release 9);). European Telecommunication Standard Institute.

James L. Heskett; W. Earl Sasser; Leonard A. Schlesinger;. (n.d.).

Johnson, B., & Christense, L. (2010). Educational Research: Quantitative, Qualitative, and Mixed Approaches. SAGE.

Johnson, J., Gooding, P. A., Wood, A. M., Taylor, P. J., Pratt, D., & Tarrier, N. (2010). Resilience to suicidal ideation in psychosis: Positive self-appraisals buffer the impact of hopelessness. Behaviour Research and Therapy.

Kale-Dery, S. (2013, December 16). Mobile phone boom, telcos and poor service. Retrieved April 15, 2014, from http://graphic.com.gh/business/business-news/14246-mobile-phone-boom-telcos-and-poor-service.html: http://graphic.com.gh/business/business-news/14246-mobile-phone-boom-telcos-and-poor-service.html

Köhl, M., Magnussen, S. S., & Marchetti, M. ( 2006). Sampling Methods, Remote Sensing and GIS Multiresource Forest Inventory. Springer.

Kreher, R. (2006). UMTS Performance Measurement:The practical Guide to KPI's for the UTRAN Environment. John Wiles & Sons.

Kularatna, N., & Dias, D. (2004). Essentials of Modern Telecommunications Systems. Artech House.

Lehnert, R. (2011). Energy aware communications: 17th International Workshop, Eunice 2011, Dresden, Germany, September 5-7,2011 Proceedings. Dresden: Springer.

Matin, M. A. (2014). Handbook of Reseame 1rch on Progressive Trends in Wireless Communications and Networking, Volu. IGI Global.

Mellouk, A., Tran, H. A., & Hoceini, S. (2013). Quality-of-Experience for Multimedia. John Wiley & Sons.

Mishra, A. R. (2004). Advanced Cellular Network Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G. John Wiley and Sons Ltd.

90

Page 105: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Mishra, A. R. (2007). Advanced Cellular Network Planning and Optimisation: 2G/2.5G/3G...Evolution to 4G. John Wiley and Sons Ltd.

Mostafa, H., & Zeadally, S. (2012). Media Networks: Architectures, Applications and Standards. CRC Press.

MTN Ghana. (2014, April 01). About Us. Retrieved April 15, 2014, from http://www.mtn.com.gh/about-mtn: http://www.mtn.com.gh/about-mtn

National Communication Authority. (2014, February). Mobile Voice Market Share for February, 2014. Retrieved April 15, 2014, from http://www.nca.org.gh/downloads/Telecom_Voice_Subscription_FEB_2014_1.pdf: http://www.nca.org.gh/downloads/Telecom_Voice_Subscription_FEB_2014_1.pdf

National Communications Authority. (2011). 5 Telcos Punished - For providing poor services. Retrieved April 15, 2014, from http://www.nca.org.gh/73/34/News.html?item=222: http://www.nca.org.gh/73/34/News.html?item=222

NCA. (2010, August 05). National Communications Authority. Retrieved April 16, 2014, from http://www.nca.org.gh/downloads/QoS%20Central%20and%20Western_August_2010.pdf: http://www.nca.org.gh/downloads/QoS%20Central%20and%20Western_August_2010.pdf

Nii , S., & Dowuona, N. (2013, February 4). Mobile penetration cross 100% in Ghana. Retrieved April 16, 2014, from http://business.myjoyonline.com/pages/news/201302/100891.php: http://business.myjoyonline.com/pages/news/201302/100891.php

Nimako, S. G., Azumah , F. K., Donkor , F., & Veronica, A.-B. (2010). Overall Customer Satisfaction in Ghana’s Mobile Telecommunication Networks: Implications for Management and Policy. ATDF .

Oodan, A. (2014). Telecommunications Quality of Service Management. IET.

Parmenter, D. (2011). Key Performance Indicators: Developing, Implementing,and Using Winning KPIs. John Wiley & Sons.

Proctor, T. (2005). Essentials of Marketing Research. Financial Times/Prentice Hall.

QUALITY OF SERVICE. (2013). QUALITY OF SERVICE (QoS) MONITORING OF CELLULAR MOBILE VOICE SERVICES. Retrieved April 15, 2014, from http://www.nca.org.gh/downloads/QoS/QoS_Trends_04_13.pdf: http://www.nca.org.gh/downloads/QoS/QoS_Trends_04_13.pdf

Saunders, M., Philip, L., & Thornhill, A. (2009). Research Methods for Business Students Fifth Edition. Princtice Hall.

Service, G. S. (2012). 2010 Population and Housing Census. Ghana Statistical Service.

91

Page 106: The relationship between Key Performance Indicators (KPIs) and Customer Perceived Quality of Service (QoS): A Case Study of MTN Ghana

Shlash Mohammad, A., & Mohammad Alhamadani, S. (2011). Service Quality Perspectives and Customer Satisfaction in Commercial Banks Working in Jordan. Middle Eastern Finance and Economics(14), 65.

Sinha, M. N. (2000). The Best on Quality. ASQ Quality Press.

Soldani, D., Li, M., & Cuny, R. (2007). QoS and QoE management in UNTS Cellular Systems. John Willey and Sons.

Trendowicz, A. (2013). Software Cost Estimation , Bench Marking and Risk Assesment, The software Decision-makers' Guide to predicatable Software Development. Springer.

Turner, K., Bateman, I. J., & Adger, W. N. (2001). Economics of Coastal and Water Resources: Valuing Environmental Functions. Springer.

Zeithaml, V. A. (2010). Delivering Quality Service. Simon and Schuster.

Zeithaml, V. A., Parasuraman, A., & Berry, L. L. (1990). DELIVERING QUALITY SERVICE : Balancing Customer Perceptions and Expectations. The Free Press.

Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin , M. (2011). Business research methods. Thomson/South-Western.

92