1 / 15

Contents

Mobile Broadband Expansion Calls for More Spectrum or Base Stations - Analysis of the Value of Spectrum and the Role of Spectrum Aggregation. Contents. Introduction Methodology, models and assumptions Analysis of engineering value Analysis of Strategic value Conclusions. Introduction.

prema
Download Presentation

Contents

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Mobile Broadband ExpansionCalls for More Spectrum or Base Stations- Analysis of the Value of Spectrum and the Role of Spectrum Aggregation

  2. Contents • Introduction • Methodology, models and assumptions • Analysis of engineering value • Analysis of Strategic value • Conclusions

  3. Introduction Mobile broadband expansion Mobile broadband users+ Data traffic To upgrade capacity Pushing upcapex budget Access to additional spectrum Spectrum allocation problem asks “what is the value of spectrum?” Two approaches Modeling Analysis Conclusions

  4. Introduction • Analysis of the value of spectrum • Engineering value • strategic value • Addresses two research questions • How is the production cost affected by different levels of spectrums? • How does the use of spectrums aggregation influence the evaluation of spectrums? • The role and value of spectrum aggregation • modeling different operators with different amount of spectrums and cooperation strategies

  5. Methodology, models and assumptions • The role and value of spectrum aggregation is carried out by modeling four different operators • Engineering value : cost savings in the infrastructure of an operator’s network • Strategic value : expected position and competitive advantage as a result of the assigned • Market and demand • By modeling an Urban area where four operators each has a 25% market share • 5, 20 and 80 GB per user and month. over eight hours per day, translating into a busy hour rate of 12.5%

  6. Methodology, models and assumptions • Network modeling, coverage and capacity and data rates Capacity = Bandwidth (MHz) * number of sites * sectors * spectrum efficiency • Cost assumptions • Opex (Operational expenditures) is set to 20% of accumulated capex, in line with estimates made by Ofcom(2009) • cost of capital (WACC) is set to 12.9%.

  7. Analysis of engineering value • Four operators with different spectrum competing on one market, network costs • How different levels of spectrum affect network costs • To capture the implicit value of spectrum as a function of lower network cost through different levels of spectrum. • Network Analysis • The four operators with similar networks, equipped with the same number of sites, each having a 25% market share • The amount of spectrum allocated is different (from 10 MHz, 20 MHz, 40 MHz to 80 MHz applicable for LTE services)

  8. Analysis of engineering value Figure2:Utilization rate of the four network Figure1:Spectrum,peak rate and capacity per km2 for the four operator Figure4: Capex to upgrade Figure3:Number of sites required to manage increased traffic

  9. Analysis of engineering value

  10. Analysis of engineering value • Conclusions engineering value • Operators with less amount of spectrum have options to provide mobile broadband services. • Aradical assumption of usage in order to stretch the analysis and show the impact of increase usage to levels that currently looks unlikely. • Operators that are able to obtain more spectrum than its competition, and also pursue network sharing, and spectrum aggregation

  11. Analysis of Strategic value • How the value of spectrum can be influenced by the user perception of service quality in terms of offered data rates. • Offered data rates • Operators with more bandwidth are able to claim that “we can offer higher data rates” • Higher peak data rates can be provided • More users can be served at a given data rate when the network is loaded

  12. Analysis of Strategic value • Impact of carrier aggregation and network modeling Difference of carrier aggregation

  13. Analysis of Strategic value • Impact of carrier aggregation and network modeling User satisfaction depends on user expectation

  14. Analysis of Strategic value • Discussion • Two conclusions about user expectations and user satisfaction • It is important to provide what is promised • User will notice and compare if other operators can provide “more”

  15. Conclusions • Operator with access to 80 MHz is able to lower its production cost with 94%when the usage increase from 5 to 80 GB. • There is a direct relation between the amount of spectrum and production cost • The competition on spectrum is set to increase, and spectrum aggregation is set to play a key role on the market • Contributions • Consider both the engineering and strategic value • Take into account existing infrastructure and consider both upgrading of existing sites and deployment of new sites

More Related