KPI analysis reported by TP SA in Q2 2010 - UKE

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KPI analysis reported by TP SA in Q2 2010


2010-09-21

The assessment of efficiency of actions taken within TP SA.

 

According to the Agreement between Telekomunikacja Polska and UKE, TP has obliged itself to publish every month the KPI (Key Performance Indicators) in order to assess the efficiency of actions taken within TP. The purpose of the KPI is to measure the business processes, including especially these aiming at the wholesale services served to alternative operators. A major role of KPI is to measure the equivalence level between processes offered by wholesale and retail TP's divisions. The main reason behind equivalence is an obligation imposed on TP to treat equally its own retail division and alternative operators. The KPI indicators aim to measure the quality, punctuality and efficiency with which TP is serving alternative operators and directly its own consumers (TP's retail) and to give a chance to compare the quality of these services.

The quarterly analysis of KPI values reported by TP allows assessing whether they are conform with obligations taken by TP and analyze the incompatibilities with regulatory goals of UKE. One of the most important decision of the Agreement between TP-UKE is the obligation of the principle of non-discrimination. The non-discrimination occurs when the level retail of monitoring indicators is not worse than the level of wholesale indicators.

Based on the analysis of the indicators provided by TP in the Q2 2010, the following observations have been taken:

  • In comparison to the Q1, the quality of processes has not improved.
  • Significant decrease of KPI levels was in observed in May and June 2010.
  • In Q2 2010, increase of the number of KPI, which level have decreased in comparison to the previous measurements.
  • A noticeable decrease of indicators that reach 100% of implementation in the Q2.
  • An observed decrease in development's dynamic of the LLU market, whereas the dynamics of growth of BSA and WLR markets have not changed.
  • Continuation of decreasing tendency of average from all KPI and for: punctuality due efficiency.
  • Recommendations from the previous analysis aimed at increasing of the KPI values, have not been taken into account in Q2. Contrary, the values of many indicators have decreasing tendency in this measurement, and only few indicators of punctuality have improved.
  • Observation of sudden and significant decrease of the value of retail indicators (and they remain at a low level), for which new wholesale equivalents have been introduced to measure non-discrimination.
  • The probable association between the decreasing tendencies of many indicators and not perfect insulation of the Chinese walls has to be assumed. This link is mentioned as well by the auditor in the "Audit Report from the Agreement UKE-TP".

An important conclusion from this analysis is unfavourable tendency, which is persisting since January, to decrease of the value of KPI. This tendency does not change when separating retail indicators from the wholesale ones when calculating the mean. Without retail indicators, the wholesale ones have the same tendency, and separation of the retail indicators has highlighted this disquieting and sudden fall of retail KPI. The analysis clearly states that this sudden decrease resulted in realization of the non-discrimination principle, although at cost of decreased level of services.

Certain justification of the weak results of KPI in Q2, can come from the unfavourable weather conditions, however, TP is justifying low value of KPI by both high number of incidents (eg KPI 24) and too low number of events (eg KPI 60). The unfavourable weather conditions should not be confused with floods occurring at the same time, because the flood as a natural phenomena is not taken into account in TP's calculations.


The analysis is available in Polish.

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