Business Models for the Next Generation of Mobile Communications

Abstract

The Next Generation of mobile network 5G, which will be based on a high-speed wireless broadband connection, could bring important changes to the way individuals and businesses employ telecommunications services and solve the issues related to the explosive growth in demand for mobile traffic, and the profitability decreasing of the mobile Broadband market. Therefore, the OMNs (Operator Mobile Networks) should plan for deploying 5G mobile network beyond 2020, which is the expected year for launching 5G. A business analysis study and mathematic modelling approach was considered. Also, a new pricing model is proposed to be consistent with the growth of mobile broadband. 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 (PED) 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 millimeter Wave system and Wi-Fi.