IK2514 Wireless Infrastructure Deployment & Economics
Homework 3 Dimensioning and Cost Structure Analysis of Wide Area Data Service Network
Laili Aidi ([email protected]) Communication Systems, School of ICT, KTH
Scenario
Coverage type “Urban”: Population density 2000 / km2, total area 10,000 km2.
Usage type “MBB Substitute”, starting from 5 GB/Month in year 0, increasing prediction 1 GB/Month each year.
User penetration “Substitute_1”: starting from 1 % of total population in year 0, increasing prediction 1% each year.
Operator type “Greenfield”: has to deploy the network from scratch.
RAT options • UMTS Macro • HSDPA Macro • HSDPA Micro
Cost Dimensioning UMTS Macro & HSDPA Macro
Cost Dimensioning (cont.)
HSDPA Micro
Money ?
Approach
1. Coverage (km2) & User demand
Example Year 0: • 20% coverage area means:
20 % x 10,000 km2 = 0 km2 total required coverage • 1 % user penetration means:
1 % x (2,000 x 10,000) = 200,000 total predicted user
0
2000
4000
6000
8000
10000
0
2000
4000
6000
8000
10000
12000
1 2 3 4 5 6
Total Required Coverage (km2)
200000
400000
600000
800000
1000000
1200000
0
200000
400000
600000
800000
1000000
1200000
1400000
1 2 3 4 5 6
Total Predicted User
2. Capacity demand (Mbps)
Example Year 1: Usage per User 6 GB/month/user, thus the user demand (UD1) is:
6 GB/month/user x 1,024 = 6144 MB/month/user As traffic is concentrated in 4 hours / day, thus the user demand in Mbps (UD2) is:
(UD1)/(30 days x 4 hours x 60 minutes x 60 seconds) x 8 = 0.113777778 Mbps/user
Then the capacity demand for the system would be: (UD2) x 400000 users = 45511.1 Mbps
18962.9
45511.1
79644.4
121362.9
170666.7
227555.6
0
50000
100000
150000
200000
250000
1 2 3 4 5 6
Total Capacity Demand (Mbps)
Approach
3. Total equipment demand for each RAT option
Coverage achieved (CvTot) Coverage achieved by BTS deployment, would be:
Cv = Maximum cell range * Amount of BTS Thus, total Coverage achieved on that year (CvTot) would be:
CvTot = Cv + CvTot last years
Capacity achieved (CpTot) Capacity achieved by BTS deployment (Cp1) would be:
Cp1 = Maximum capacity * Amount BTS
Capacity achieved by add cell deployment (Cp2) would be: Cp2 = Maximum capacity * Cell
Where Add.Cell (Cell) is: Cell = Amount of (Cp) BTS * (6-1)
Thus, total Capacity achieved on that year (CpTot) would be: CpTot = Cp1 + Cp2 + CpTot last years
Approach
Data Line (DL) DL = (Cp1 + Cp2) / Data line capacity
Site installation (SI) and Site build out (SB) SI or SB = Amount of BTS purchased
Site Lease (SL) and Electricity (EL) SL or EL = Amount of BTS purchased + Amount of BTS purchased last year
Leased Line (LL) LL = CpTot / Leased line capacity
Approach
Result - UMTS Macro
BTS & Add Cell Demand
Installation - Built Out and Running Demand
Result - HSDPA Macro
BTS & Add Cell Demand
Installation - Built Out and Running Demand
Result - HSDPA Micro
BTS Demand
Installation - Built Out and Running Demand
Comparison
Comparison (cont.)
4. CAPEX, OPEX, and Total Cost
CAPEX = (RTE Cost) + (Installation & Build out Cost) OPEX = Running Cost + (10 % x CAPEX)
Total Cost = CAPEX + OPEX
Approach
5. NPV for each RAT option: Financial Viability
PV = CF / (1 + r)^n NPV = PV0 + PV1 + .. + PV5
Approach
UMTS Macro: - High Add. Cell needs - High RTE cost, - High Installation & Build out cost - Sharp increasing of OPEX HSDPA Micro: - Highest BTS deployment needs - High Installation & Build out cost - Sharp increasing of OPEX - Highest capacity achieved HSDPA Macro: - Less BTS deployment needs - Less CAPEX, - Slow increasing of OPEX - Best NPV
Go for HSDPA Macro !
Conclusion & Recommendation
Thank You!
