4.B - KPIs, Acceptance & Penalties

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MTN NG | KPIs, Acceptance & Penalties

Table of Contents
1. KPIS AND PENALTIES 2
2. NETWORK PERFORMANCE KPIS (ERICSSON, HUAWEI, ZTE) 2
2.1 OSS KPIS 2
2.2 2G KPIS 2
2.3 3G KPIS 2
2.4 4G KPIS 3
3. PERFORMANCE PENALTIES 3
4. DELIVERY PENALTY 3

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MTN NG | KPIs, Acceptance & Penalties

1. KPIs and Penalties

The deliverables will be governed by KPIs and Penalties detailed in this document.

2. Network Performance KPIs (Ericsson, Huawei, ZTE)

2.1 OSS KPIs

1. OSS KPIs for shall be measured at Controller & cell level.


2. For KPIs calculation, MTN NG formulas shall be used. As counters can change with software
releases, they need to be kept up to date; formulas for new counters shall be subject to
agreement between MTN and Nokia.
3. Current practice of exclusions will apply to the KPIs and the applicable ones will be
removed from the KPI calculations after the supplier carries out all possible remedies. KPIs
on cells failing the targets due to reasons outside the suppliers scope or control shall be
excluded (capacity issues requiring capex investments, external interference, handset
issues, etc.)
4. Cells with very low traffic should not be considered in the calculation of number of cells
crossing thresholds, only if the supplier presents necessary justifications like edge of
coverage, deep indoor coverage, or remote area or highway Road sites.
Threshold Cell Threshold

2.2 2G KPIs

2G KPIs Targets
CALL SETUP SUCCESS RATE >= 95%
SDCCH DROP RATE <= 1.5 %
TCH DROP CALL RATE <= 1.5 %
HANDOVER SUCCESS RATE >= 95%

2.3 3G KPIs

3G KPIs Targets
RAB Retainability CS Voice SR >=96
RAB Retainability PS SR >=95
CSSR CS Voice >= 96%
RRC Conn setup SR >= 96%
RRC Conn SR >= 96%

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MTN NG | KPIs, Acceptance & Penalties

2.4 4G KPIs

4G KPIs Targets
RACH Complete Stp SR >= 96%
RRC Setup Success >=96%
ERAB Drop Rate <= 1.3%
ERAB Setup Success >=96%

3. Performance Penalties

Penalty will be applied in cases listed below:

1. KPIs degradation exceeding 20% of the assigned targets (after exclusions)


2. Delays in delivery of tasks against the projected timelines
3. Poor quality or incomplete delivery of assigned tasks

Following clauses will define how Penalties will be applied:

1. Penalty will be applied on the total value of relevant services packages where partner is unable
to meet the deliverables.
2. Performance penalty will be capped to a maximum of 5% of the monthly services payment of
relevant services packages.
3. NPO Project manager will evaluate the delivery on quarterly basis in lieu of customer
acceptances, calculate the penalty amount with mutual consent of Procurement/BL and
intimate the partner about penalty deductions in relation to incomplete or delayed delivery.
4. The mechanism of debit notes will be used to deduct penalty on quarterly basis in order to
avoid any complicated mechanism for altering the PO or making adjustment in the invoices.

4. Delivery Penalty

1. Delivery penalty will be applicable to Drive Testing services only.


2. Delivery penalty will be calculated based on partial, incomplete or unsatisfactory delivery of
drive test and field survey services.
3. Delivery penalty can be up to 10% of the total value of relevant service packages.
4. NPO Project manager will evaluate the delivery on monthly basis, calculate the penalty amount
with mutual consent of Procurement/BL, and intimate the partner about penalty deductions in
relation to incomplete or delayed delivery. Penalty deduction will be done on quarterly basis.
5. The mechanism of debit notes will be used to deduct penalty on quarterly basis in order to
avoid any complicated mechanism for altering the PO or making adjustment in the invoices.

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