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Technoeconomic evaluation of the major telecommunication investment options for European players

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10 Author(s)

This article summarizes the major results from European projects drawing final conclusions and recommendations from the technoeconomic evaluation of three telecommunications market studies. It presents an analysis addressing a wide range of crucial telecommunications questions debated today. The business cases are: seamless mobile IP service provision, 3G mobile virtual network operators (MVNO), and fixed networks for broadband IP services. Extensive market analysis has been carried out for modeling demand, penetrations, and tariff structures for new mobile services and broadband services as an input to the business cases. Results show that over a 10-year study period, UMTS business is profitable in most cases for established operators with reasonable market share. The 3G MVNO business case is profitable under typical conditions when MVNO yields about 10 percent penetration, depending on the country type. Provision of fixed broadband services with a fiber to the curb solution is viable in dense urban and urban areas, but not in suburban environments, while fiber to the home is viable only in dense urban areas, despite the selection of protocol (ATM vs. Ethernet). Furthermore, broadband wireless access (BWA) systems, in dense urban and urban areas, show quite promising economic results

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Network, IEEE  (Volume:20 ,  Issue: 4 )