Techno-economic modelling of wireless network and industry architectures (original) (raw)

Techno‐economic analysis of beyond 3G mobile technology alternatives

info, 2009

Purpose-The purpose of this paper is to show how the bulk of the mobile telecom traffic is starting to migrate towards internet and IP based services, and the choice of alternative paths is widening as new technologies from different backgrounds are emerging. This paper aims to compare some possible approaches to find out suggestions for the most feasible technology selections. Design/methodology/approach-The case study focuses on big Western European operators being in the position to choose the 3G and beyond technology track-whether continuing to the UMTS path or taking a more radical shift towards a full IP based WiMAX technology. The work includes full quantitative modeling of both cost and revenue sides, separating the network provisioning business from the service provisioning for more detailed economical analysis of the technology choices. For the revenue estimation, specific user benefit modeling has been performed against the technology related parameters. Special emphasis in this paper is on the risk and sensitivity analyses, which reveal more of the case dynamics than bare economic key figures. Findings-The UMTS/HSPA path was found to be the most beneficial and robust continuum for the European incumbent mobile operator. Basing the new data services on WiMAX technology was identified to include more risks, although for an operator not having a license for UMTS network it provides a possibility to serve the high end advanced users profitably. The challenge lies especially in the narrower terminal and user base. In the worst development scenarios, especially the network provider of WiMAX is vulnerable, as making big investments on the network. Research limitations/implications-Not all possible business cases were analyzed, so that no conclusion can be made, based on this study, on operators without wide GSM background, or WiMAX approaches of a limited scope. Practical implications-The study gives support for the operators in deciding on strategic deployment plans. Originality/value-The study provides unique information through comprehensive data gathering, analysis and forecasts, with feasible accuracy level for this kind of case study, combining both technical and business aspects of the still widely uncharted and fast developing mobile data arena.

Mobile Network Evolution toward 3G: A Techno-Economic Analysis

2006

This paper addresses technical and economical aspects to configure a Third Generation (3G) mobile cellular network. Major components of costs and revenues and the major stakeholders are identified and a methodology is developed to compare the main factors affecting the business case of 3G operators and builds a model that estimates the profitability of different scenarios. An open issue, both from the technical and economic points of view, is to identify the requirements and the necessary steps to migrate from 2G to 3G mobile cellular networks. A number of mobile network evolution strategies toward 3G were generated and evaluated using the TERA model. Initial economic conclusions have been derived, presented and discussed using key profitability factors such as Net Present Value (NPV), and Payback Period.

08043 Summary--Perspectives Workshop: Telecommunication Economics}

…

This Dagstuhl Seminar on "Telecommunication Economics" was organized to discuss and develop partially a strategic research outline among key people in order to enhance the competence in the field of telecommunication economics and respective network management tasks for integrated Internet and telecommunication networks. The view on respective guidelines and recommendations to relevant players (end-users, enterprises, operators, regulators, policy makers, and content providers), focusing on the provision of new converged wireless services and content delivery networks to people and enterprises determined an aspect of relevance.

Telecommunication Economics—Summary on the Dagstuhl Perspectives Seminar No. 08043

2008

The economic perspective of the mobile networks in Europe

Over the next years, about 70 licenses for UMTS (Universal Mobile Telecommunication System) spectrum will be distributed in Europe, either through auctions or comparative hearings. Now, more than ever, mobile operators are making critical decisions, which will shape their business over the next ten years. The main challenge is to maximize investment efficiency to provide next-generation, mobile data services, at announced speeds of up to 2 Mbps. Such systems, generally referred to as IMT-2000 or UMTS, are expected to emerge in 2001 in Japan and in Europe, hence the intense preparations in progress at the manufacturing, regulatory, and operator levels.

Future Networks and User Requirements – A Techno-Economic Analysis

Wireless Personal Communications, 2006

ICT based networks and especially wireless networks are experiencing an unprecedented development – and not least expected future development. The realization and specific development is, however, determined in a complicated interplay between technology, market/regulation and user requirements. The interplay is complicated also because the trends are of a very different character and they are interrelated. It is the aim of this paper to contribute to the understanding of these driving forces in the development of future networks by presenting a framework for discussing trends in the three areas and their interplay.

General framework for techno-economic analysis of next generation access networks

2010

A large variety of access network technologies and architectures that provide wide service portfolio to the customer are available for the network operators. Each of the potential access network architectures and technologies varies in complexity, network functionality, services supported and overall network costs. A detailed comparison of the economic viability of different access network scenarios is crucial for operators due to the high cost of this network segment. This paper identifies all essential elements of a general framework for the techno-economic analysis of different access network technologies and architectures, as well as describes some specific issues/problems related to the techno-economic evaluation of next generation (NG) access networks. The goal is to have at operator's disposal a methodology allowing the techno-economic comparison of the proposed access network solutions and their introduction/rollout.

The financial perspective of the mobile networks in Europe

IEEE Personal …, 2001

ithin the next years, about 70 licenses for 3G mobile or Universal Mobile Telecommunication System (UMTS) spectrum will have been distributed in Europe, either through auctions or comparative hearings. Mobile operators are making critical decisions, which will shape their business over the next ten years. The main challenge is to maximize investment efficiency to provide next-generation, mobile data services, at announced speeds of up to 2 Mb/s. Such systems are expected to emerge in late 2001 in Japan and in 2002-3 in Europe, hence the intense preparations in progress at the manufacturing, regulatory, and operator levels. The European ACTS project Techno-Economic Results from ACTS AC364 (TERA) [1] is among the first groups in the world to publish figures [2-5] on the economic feasibility of next-generation mobile systems for mobile operators in Europe. This article presents the techno-economic perspective of these technologies, aiming to provide guidelines for strategies in the move toward broadband mobile services. The analysis has been carried out during 2000 and is based on 3G rollout scenarios in two "typical" European countries with contrasting profiles: a large country with moderate mobile penetration and a "fast-track" smaller country with higher mobile penetration around 60 percent today and slated to grow to 80 percent in upcoming years. Comparison of both incumbents' and newcomers' (greenfield) business cases in these two country types is presented. The techno-economic evaluation is followed by a sensitivity analysis in order to identify the impact of important parameters such as the operator's market share and overall level of demand for next-generation mobile systems. Following an overview of the different paths that may be taken toward 3G mobile systems, the general approach and main assumptions adopted for the business case are described. Final results are presented and discussed. Context and Evolution Paths Europe's digital cellular Global System for Mobile Communications (GSM) standard is being enhanced with data capabilities based on HSCSD [6] and GPRS [7, 8], which require a hardware upgrade to the GSM core network. Enhanced Data for GSM Evolution (EDGE) [9], which includes advanced (enhanced) versions of High-Speed Circuit-Switched Data (EHSCSD) and Generic Packet Radio System (EGPRS), is another upgrade solution. Since EDGE uses a different coding scheme, extra hardware and software must be added to the HSCSD or GPRS systems. UMTS [10] will provide mobile telephony and high-throughput data services. In all cases, the user will be required to change terminals, a fact that must not be neglected by the operator. Figure 1 illustrates these different evolution paths. While the intermediate steps are overlaid onto a GSM network, UMTS requires full buildout of the radio access subsystem. Incumbent operators may, however, reuse existing GSM sites. This is a major advantage for an incumbent operator in order to provide advanced multimedia mobile services. The Business Case This investment analysis was carried using the tool developed by ACTS 364/TERA [1, 4]. Figure 2 analyzes the main principles of the methodology used. The cost figures for the network components are collected in an integrated cost database, which is the heart of the model. This database is frequently updated with data collected from the major telecommunications operators, suppliers, standardization bodies, and other available sources. The model calculates the cost evolution of the different components over time [4]. In the network evaluation, the services to be provided to consumers must be specified. The network architectures for the selected set of services are defined, and a radio-dimensioning model is used to calculate the number of base transceiver stations (BTSs) as well as their installation cost. The future market penetration of these services and the tariffs associated with them are inserted in the

Techno-economic modelling of wireless network and industry architectures (original) (raw)

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