# Selection of Mobile Network Operator Using Analytic Hierarchy Process (AHP) Nasruddin Hassan, Norfaieqah Ahmad and Wan Malissa Wan Aminuddin

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2 2 AHP includes three phases, which are decomposition, comparative judgment and priority synthesis (Saaty, 1980). The AHP model for our study is illustrated in Figure 1. Fig. 1: The AHP model Decomposition phase: In the decomposition phase, the hierarchical structure is constructed such that the top level represents the overall objective and the lower level indicates the main evaluation criteria and alternatives. Comparative judgment phase: In the comparative judgment phase, a comparison matrix at each level is constructed based on the user s preference from the numerical ratings of pairwise comparison. In this phase, the AHP questionnaire was designed in accordance with analytic hierarchy structure. All criterion and alternatives were compared pairwise extracting numerical scale 1 (equally important) to 9 (very important) ratings to obtain their relative importance to the problem. If there are n decision criteria or decision alternatives, then there will be pairwise comparisons in square matrices. A pairwise comparison matrix C, for n decision criteria is in the form A pairwise comparison matrix for decision alternatives with respect to each of the criteria uses the same form as the matrix above. Priority synthesis phase: The priority synthesis phase calculates a composite weight for each alternative based on the preferences obtained from the comparison matrix. In this study, the technique used for the priority or weight determination is the eigenvector method. The right principle eigenvectors are estimated corresponding to the maximal eigenvalue of the pairwise comparison. The resulting composite weights produce a relative ranking of the alternatives with the top rank indicates an optimal alternative. Consistency checking: In making paired comparisons, people often do not have the logical ability to always be consistent. It is preferable to have a small consistency ratio(cr). Saaty (1980) suggested repeating the pairwise comparisons until the CR reaches 0.1 or lower.cr is the ratio of consistency index (CI) to random index (RI), which is given by, where

3 3 with (1977) as shown in Table 1. being the maximal eigenvalue, and the standardized RI values are those calculated by Saaty Table 1: Random indices n RI Modelling: The AHP model illustrated in this paper uses the four decision criteria of monthly, charges, rewards and value added. Monthly refers to the monthly fees that users need to pay based on their mobile network usage monthly. Charges include single call and messaging charges offered by the mobile operator networks. Rewards refer to special benefits during particular periods such as birthdays or anniversary rewards. Value added include extra provided to mobile users such as call forwarding, voice mail and missed call notification. The three mobile network considered are Celcom, Maxis and DiGi since these three are the most popular networks subscribed by students. Results and Discussions The questionnaires were collected from 36 respondents and the average of each entry in the comparison matrices was calculated. Respondents were among students of the age of with the experience of using more than one mobile network operator. Data analysis was done using Expert Choice (EC) software.table 2 is the questionnaire to compare the relative importance between decision criteria with respect to goals. Table 2: Questionnaire Evaluation criteria Numerical scale Evaluation criteria Monthly Charges Monthly Rewards Monthly Value added Charges Rewards Charges Value added Rewards Value added The resulting priorities or weights were calculated at each level adopting the eigenvector method using Expert Choice software. The synthesis output with respect to goals is illustrated in Figure 2. Celcom was found to be the most favorable mobile network operator with the highest weight followed by Maxis and DiGi with weights and respectively. The overall consistency ratio is 0.06 which is acceptable for AHP implementation. Fig. 2: Synthesis output with respect to goals From the results tabulated in Table 3, respondents prioritize monthly criteria in selecting mobile network operators with the highest weight followed by charges (0.381), rewards (0.143) and value added (0.057)with a consistency ratio CR of This implies that student users want to know how much they have to pay for their monthly usage as an indicator in selecting mobile network operator, most probably because they have limited allowance.

5 5 Hennock, M., Everest goes online for anniversary stm [25 April 2012]. Keramati, A. & S.M.S. Ardabili, Churn analysis for an Iranian mobile operator. Telecommunications Policy, 35(4): Kim, H.S. and C.H. Yoon, Determinants of subscriber churn and customer loyalty in the Korean mobile telephony market.telecommunications Policy, 28(9-10): Kuo, Y.F. and P.C. Chen, Selection of mobile value-added for system operators using fuzzy synthetic evaluation.expert Systems with Applications., 30: Liao, C.H. & H.Y. Lin, 2011.Measuring operational efficiency of mobile operators in Japan and Korea. Japan and The World Economy, 23(1): Mansfield, I., China Mobile Expands Coverage to the Spratly Island. [25 April 2012]. Saaty, T.L., A scaling method for priorities in hierarchical structures.journal of Mathematical Psychology, 15(3): Saaty, T.L., The Analytic Hierarchy Process. New York: McGraw Hill.

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