Telecom Operators ARDT and Data Revenue

CAT 2008 Slot 1 · DILR · Hard · Data Interpretation

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Passage / data set

Telecom operators get revenue from transfer of data and voice. Average revenue received from transfer of each unit of data is known as ARDT. In the diagram below, the revenue received from data transfer as percentage of total revenue received and the ARDT in US Dollars (USD) are given for various countries.

  • India: ARDT \approx \1,Data, Data % \approx 9%$
  • Singapore: ARDT \approx \9,Data, Data % \approx 20.5%$
  • Sweden: ARDT \approx \6,Data, Data % \approx 18%$
  • UK: ARDT \approx \13,Data, Data % \approx 30%$
  • Spain: ARDT \approx \6.5,Data, Data % \approx 15%$

Question 1 of 3

It was found that the volume of data transfer in India is the same as that of Singapore. Then which of the following statements is true?

  1. A.

    Total revenue is the same in both countries.

  2. B.

    Total revenue in India is about 2 times that of Singapore.

  3. C.

    Total revenue in India is about 4 times that of Singapore.

  4. D.

    Total revenue in Singapore is about 2 times that of India.

  5. E.

    Total revenue in Singapore is about 4 times that of India.

Answer

E

Explanation

Volume of data transfer VV is same for India and Singapore. Data Revenue =V×ARDT= V \times \text{ARDT}. For India: Data Rev =V×1=V= V \times 1 = V. Total Rev =V0.09= \frac{V}{0.09}. For Singapore: Data Rev =V×9=9V= V \times 9 = 9V. Total Rev =9V0.205≈44V= \frac{9V}{0.205} \approx 44V. Ratio of Total Rev (Singapore / India) =44V11V=4= \frac{44V}{11V} = 4. Thus, total revenue in Singapore is about 4 times that of India.

Question 2 of 3

It is expected that by 2010, revenue from data transfer as a percentage of total revenue will triple for India and double for Sweden. Assume that in 2010, the total revenue in India is twice that of Sweden and that the volume of data transfer is the same in both the countries. What is the percentage increase of ARDT in India if there is no change in ARDT in Sweden?

  1. A.

    400%

  2. B.

    550%

  3. C.

    800%

  4. D.

    950%

  5. E.

    cannot be determined

Answer

C

Explanation

In 2010: Sweden Total Rev =x= x. India Total Rev =2x= 2x. Sweden Data % =2×18%=36%= 2 \times 18\% = 36\%. Sweden Data Rev =0.36x= 0.36x. Sweden ARDT = \6.Volume. Volume = \frac{0.36x}{6} = 0.06x$.

India Data % =3×9%=27%= 3 \times 9\% = 27\%. India Data Rev =0.27×2x=0.54x= 0.27 \times 2x = 0.54x. India Volume =0.06x= 0.06x. India ARDT in 2010 = \frac{0.54x}{0.06x} = \9$.

Original ARDT for India = \1.. % Increase in ARDT = \frac{9 - 1}{1} \times 100 = 800%$.

Question 3 of 3

If the total revenue received is the same for the pairs of countries listed in the choices below, choose the pair that has approximately the same volume of data transfer.

  1. A.

    Philippines and Austria

  2. B.

    Canada and Poland

  3. C.

    Germany and USA

  4. D.

    UK and Spain

  5. E.

    Denmark and Mexico

Answer

D

Explanation

Volume of Data Transfer = \frac{\text{Data Revenue %}}{\text{ARDT}} \times \text{Total Revenue}. For UK: Data % ≈30%\approx 30\%, ARDT ≈13  ⟹  3013≈2.31\approx 13 \implies \frac{30}{13} \approx 2.31. For Spain: Data % ≈15%\approx 15\%, ARDT ≈6.5  ⟹  156.5≈2.31\approx 6.5 \implies \frac{15}{6.5} \approx 2.31. Since the ratios are equal, UK and Spain have approximately the same volume of data transfer for equal total revenue.

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