Techno-economic analysis and prediction for the deployment of 5G mobile network

The fourth generation of mobile networks (4G) must overcome the new challenges that have emerged with the explosive growth in demand for mobile traffic and the Internet of Things. Therefore, the OMNs (Operator Mobile Networks) should plan for upgrading 4G to 5G mobile network beyond 2020, which is the expected year for launching 5G. A techno-economic analysis and mathematic modeling approach was considered. Also, a new pricing model is proposed to be consistent with the growth of mobile broadband. The two major cost elements, Capital Expenditure and Operative Expenditure were compared with the revenue expected to be collected within the deployment period. The results show that 5G is very beneficial, not only because of its lower cost compared with 4G LTE, but also due to the increment of average data consumptions offered by 5G mobile technologies and the increasing growth of number of users. We also found that good analysis of Price Elasticity of Volume gives an important margin of benefit. We confirm that the reuse of existing sites have a large impact on reducing costs when a denser macro network deployed. However, we encountered a lack of the limited capacity related to the macro sites and coverage limited with small cell solutions like femtocells, picocells deployed with 5G mmW system and Wi-Fi.