dimensioning and cost structure analysis of wide area data service network - presentation

IK2514 Wireless Infrastructure Deployment & Economics

Homework 3 Dimensioning and Cost Structure Analysis of Wide Area Data Service Network

Laili Aidi (aidi@kth.se) 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!