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We explore the financial impact of new capacity-enhancing technologies involving the physical layer, in particular intelligent antennas and multiple input multiple output techniques. Using annual capital expenditure as an indicator of value to the operator, our results show that with aggressive data growth, capacity-enhancing technologies are key in securing the financial viability of the operator's business, while at the same time allowing for both unit price elasticity and positive net present value. They are hence crucial for operators that want to create demand for high data usage and/or gain market share.
Date of Publication: Aug. 2003