UMTS-WLAN Technoeconomics IST UMTS UMTS - - WLAN roaming in hot spot areas WLAN roaming in hot spot areas A techno A techno - - economic study economic study Anne Cerboni – France Télécom R&D Jarmo Harno, Ilari Welling – Nokia Research Center Dimitris Katsianis, Dimitris Varoutas – University of Athens Kjell-Ove Kalhagen - Telenor 3rd IEEE Workshop on 3rd IEEE Workshop on Wireless Wireless Local Local Area Area Networks Networks September September 27 27- 28, 2001, Newton, Massachusetts 28, 2001, Newton, Massachusetts
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UMTS-WLAN Technoeconomics IST
UMTSUMTS--WLAN roaming in hot spot areasWLAN roaming in hot spot areasA technoA techno--economic studyeconomic study
Anne Cerboni – France Télécom R&D
Jarmo Harno, Ilari Welling – Nokia Research Center
Dimitris Katsianis, Dimitris Varoutas – University of Athens
Kjell-Ove Kalhagen - Telenor
3rd IEEE Workshop on 3rd IEEE Workshop on WirelessWireless Local Local AreaArea NetworksNetworksSeptember September 2727--28, 2001, Newton, Massachusetts28, 2001, Newton, Massachusetts
UMTS-WLAN Technoeconomics IST
Work conducted withinWork conducted withinEuropeanEuropean R&D projetR&D projet
wObjective : Techno-economic evaluations of broadband fixed and mobile solutions for telecommunications services
wPartners: Telenor, Nokia, France Télécom, Deutsche Telekom, Universidade de Aveiro, University of Athens, Atlantide
UMTS-WLAN Technoeconomics IST
What is seamless What is seamless mobile IP service provision?mobile IP service provision?
wMultimedia services offered via a 3G mobile network complemented with WLANs(Hiperlan/2) in hot spots; both networks belong to the same operator.
wThe access networks ensure network discovery, seamless handover, qualityof service requirements, and transparent roaming.
wThe core network is IP.
wArchitecture is that studied in the IST/MIND project.
UMTS-WLAN Technoeconomics IST
UMTS UMTS –– WLAN business caseWLAN business caseQuestions Questions andand challengeschallenges
w Question: Is UMTS+Hiperlan2 worth the investment? Under whatconditions?w Goal: to construct a techno-economic business case simulatorw Demand forecasting
– Uncertainty in market uptake in a highly competitive context
– Many services are currently unknown
w Dimensioning rules– Technical understanding of the target architecture and upgrades
– Ability to model the architecture
w Pricing– Reference prices not available for broadband mobile services
– New business models: advertising, 3rd-party pays, e-commerce commissions, volume or session based pricing
w Confidentiality– market data, costs, roll-out strategies are manufacturer and operator secrets
UMTS-WLAN Technoeconomics IST
TheThe business case business case approachapproach: TONIC : TONIC tooltool
NPVNPV IRRIRR PaybackPeriod
PaybackPeriod
Economic Inputs
Cash flows, Profit & loss accounts
Geometric Model
Services Architectures
Year 0 Year 1 Year n Year m. . .
Demand for the Telecommunications Services
DB
RevenuesOA&MCosts
Life Cycle Cost
Life Cycle Cost
First Installed Cost
First Installed CostInvestments
Risk Assessment
UMTS-WLAN Technoeconomics IST
3G 3G and and 3.5G 3.5G demand curvesdemand curves
Mobile subscriber penetration:3G, 3.5G and the sum
Network Network Investments Investments (1)(1)GSM/GPRS to UMTS: new radio access network, some re-use of NSSHiperlan/2: Radio access points & controllers, routers and serversInterworking (architecture developed within European IST/MIND project)
UMTS CN
GGSN / FASGSN
HLR
SGSN
UTRAN
RNCMN
AccessServer / HA
Backbone
AAA
BAN
AAA
BARMN ( IWU)B M G
UTRAN
Corporate
AccessServer/HA
BAN
UMTSPS CN
S G S N GGSN/FA
S G S N
I W UBARM N
RNCM N
HLR
AAA
B M G
UMTS-WLAN Technoeconomics IST
Network Network InvestmentsInvestments (2)(2)
wUMTS
– Radio Access Network (RAN): Base stations (Node B) and radio network controllers (RNC)