The document outlines a cost structure analysis for deploying a wide area data service network in an urban environment, focusing on user demand forecasts and required coverage. It discusses different radio access technology (RAT) options, including UMTS and HSDPA, and provides calculations for capacity demand, total equipment demand, and overall costs (CAPEX and OPEX). The conclusion recommends HSDPA macro due to its lower deployment needs and better financial viability compared to UMTS and HSDPA micro.

1. 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

2. 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

3. Cost Dimensioning
 UMTS Macro & HSDPA Macro

4. Cost Dimensioning (cont.)
 HSDPA Micro

5. Money ?

6. 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
Total Predicted User
Total Required Coverage (km2)
1400000
12000
1200000
10000 1200000
10000
1000000
1000000
8000
8000 800000
800000
6000
6000 600000
600000
4000 400000
4000 400000
2000 200000
2000 200000
0 0
0
1 2 3 4 5 6
1 2 3 4 5 6

7. Approach
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
Total Capacity Demand (Mbps)
250000 227555.6
200000
170666.7
150000
121362.9
100000 79644.4
45511.1
50000
18962.9
0
1 2 3 4 5 6

8. 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

9. 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

10. Result - UMTS Macro
 BTS & Add Cell Demand
 Installation - Built Out and Running Demand

11. Result - HSDPA Macro
 BTS & Add Cell Demand
 Installation - Built Out and Running Demand

12. Result - HSDPA Micro
 BTS Demand
 Installation - Built Out and Running Demand

13. Comparison

14. Comparison (cont.)

15. Approach
4. CAPEX, OPEX, and Total Cost
CAPEX = (RTE Cost) + (Installation & Build out Cost)
OPEX = Running Cost + (10 % x CAPEX)
Total Cost = CAPEX + OPEX

16. Approach
5. NPV for each RAT option: Financial Viability
PV = CF / (1 + r)^n
NPV = PV0 + PV1 + .. + PV5

17. Conclusion & Recommendation
 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 !

18. Thank You!