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36. KPI in All Industries

36.18 Telecom

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Circle interviews ask churn, ARPU (average revenue per user), and whether complaints closed inside the SLA. SIM cards issued is the classic vanity metric. This is a fictional circle, not a result of any operator in Maharashtra.

KPI What the number means Who uses it Action it drives
Churn % Subscribers who left divided by subscribers at the start of the month. Circle head A high churn stops the SIM drive. Those people are already leaving.
ARPU Revenue in the month divided by subscribers at the start. Circle finance A low ARPU with many new SIMs often means empty activations.
SLA met % Complaints resolved inside the promise divided by complaints. Network and care A backlog is technicians, not a new offer.

Fictional sample rows. One month.

City Subscribers Churned Revenue Complaints Resolved in SLA New SIMs
Pune 10,000 300 ₹20,00,000 400 360 800
Nashik 6,000 120 ₹15,00,000 180 170 200
Kolhapur 4,000 280 ₹6,00,000 220 110 500
Nagpur 8,000 160 ₹20,00,000 300 270 300
Mumbai 3,000 90 ₹7,50,000 100 90 80
Sambhaji Nagar 5,000 250 ₹8,00,000 260 130 600

Worked from those rows.

  • Subscribers 36,000. Churned 1,200. Revenue ₹76,50,000. Complaints 1,460. Resolved in SLA 1,130. New SIMs 2,480.
  • Churn is 1,200 ÷ 36,000 = 3.3%.
  • ARPU is 76,50,000 ÷ 36,000 = ₹212.50.
  • SLA met is 1,130 ÷ 1,460 = 77.4%.

Pune: churn 300 ÷ 10,000 = 3.0%, ARPU 20,00,000 ÷ 10,000 = ₹200, SLA 360 ÷ 400 = 90.0%, new SIMs 800. Nashik: churn 120 ÷ 6,000 = 2.0%, ARPU 15,00,000 ÷ 6,000 = ₹250, SLA 170 ÷ 180 = 94.4%, new SIMs 200. Kolhapur: churn 280 ÷ 4,000 = 7.0%, ARPU 6,00,000 ÷ 4,000 = ₹150, SLA 110 ÷ 220 = 50.0%, new SIMs 500.

Good KPI Vanity metric
From the same rows Kolhapur churn 7.0% and SLA 50.0% Kolhapur 500 new SIMs (Pune's 800 is the same trap)
Why The circle is losing subscribers and half the complaints missed the promise. The activation card says growth. ARPU is the lowest in the file.

What the manager does. The Nashik circle lead is the pattern in this file: low churn, higher ARPU, complaints mostly inside SLA. Do not give Nashik a target of 800 SIMs to match Pune. The Pune lead looks at the 300 who left and the 40 complaints outside SLA, and does not add a SIM stall. The Kolhapur lead stops the activation drive until the 110 missed complaints are cleared. Sambhaji Nagar is the same shape: 600 new SIMs, churn 250 ÷ 5,000 = 5.0%, SLA 130 ÷ 260 = 50.0%.

Ravindra Bagale's Tip

Friends, many students define ARPU as "revenue divided by new SIMs". New SIMs are a small part of the month. Decide first whether the denominator is start subscribers or average subscribers, and write it in the title. Don't make this mistake!