Application of Data Envelopment Analysis in Measuring the Relative Efficiency of Local Telephone Exchanges:A Case Study of Telecommunication Region of East Azerbaijan

After the privatization and acceptance of Iran Telecommunication Company in the stock exchange, it is inevitable for the shareholders to know the efficiency status of telecommunication exchanges. The present study seeks to answer the fundamental question of how inefficient telephone exchanges can be brought to the brink of efficiency. To this end, by collecting the opinions of experts through a pairwise comparison questionnaire and analyzing the data using the ANP method, the effective variables in the efficiency of the exchanges have been identified. The raw data have been prepared from the statistics and evaluation scores obtained from the "Planning" and "Inspection and Evaluation" departments and the financial statements up to 1396, which have been legally audited. Then, using data envelopment analysis (DEA) method and in the conditions of "returns to fixed and variable scale", the efficiency score of the calculation exchanges, ranking and finally the strategies to improve the efficiency of inefficient exchanges have been extracted. The difference in the number of inefficient exchanges in the two scales indicates the proof of the theory of "scale inefficiency", the non-functioning of the exchanges at the optimal scale and the waste of resources by the exchanges. The weak position of the counties in the ranking table necessitates the selection of "heads of telecommunications of the counties" according to individual and professional competencies. Also, it was found that the lack of "competitive-motivational environment", "decision-making power" and "risk-taking" and the existence of "various organizational and legal restrictions" are important factors in the inefficiency of the exchanges.