Mobile coverage investment model linked to mobile network design

Investment planning for rural mobile networks is critically dependant on the local conditions. There are geographical limits beyond which network deployment is not economically justified. Methodology to assess these limits is presented in this paper. Two different network deployment scenarios are as...

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Bibliographic Details
Published in:Netnomics 2007-10, Vol.8 (1-2), p.49-70
Main Authors: Pollaenen, Ossi, Saeily, Mikko
Format: Article
Language:English
Subjects:
Capital budgeting
Capital investments
Communications industry
Communications networks
Demographics
Demography
Design
Economic models
Economics
Estimates
Financing
Investment
Links
Methods
Mobile communications networks
Net present value
Networks
Payback periods
Radio
Rural
Rural areas
Studies
Success
Technology
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Summary:Investment planning for rural mobile networks is critically dependant on the local conditions. There are geographical limits beyond which network deployment is not economically justified. Methodology to assess these limits is presented in this paper. Two different network deployment scenarios are assessed for rural deployment. The scenarios differ technically - one uses well known radio technologies, while the other employs advanced radio link enhancement technologies. Radio link enhancement technologies have evolved to a point where the new technology should be used in early network planning scenarios to maximize investment efficiency. Investment efficiency is also subject to environmental and demographic conditions. A better understanding of the conditions will guide mobile network operators to successful investment planning. A simple cash flow model is created to estimate the success of the investment. Rural conditions in South Africa are used as a case study to assess the feasibility of the selected approach to investment planning.
ISSN:1385-9587
1573-7071
DOI:10.1007/s11066-008-9015-0