Techno-Economic Modelling of LTE Networks

Abstract:
The current roll-out of Long Term Evolution (LTE) [1] mobile networks evolves existing mobile networks towards homogeneous IP based next generation mobile networks. Many technological options and migration paths are possible for this network evolution and operators and vendors need to find out, which solution and which timing satisfy the roll-out objectives at minimal short-term and long-term cost. It is therefore necessary to model the incurred capital expenditures (CAPEX) [2] and operational expenditures (OPEX) [3] in order to estimate the total cost of ownership (TCO) [4] of the resulting setup. The paper outlines the respective model aim, structure and assumptions based on a simple LTE roll-out example scenario and gives an overview on the techno-economic results. The work has been carried out within the EU CELTIC project “MEVICO” [5].