Abstract

<p>Fifth-generation wireless (5G) mobile communication technology has been classified as a high wireless standard that is capable of handling internet of things, machine-to-machine, and device-to-device communication. Consequently, there is a need to meet the very sensitive requirements of 5G, which include high coverage density, high speed, high capacity and low end-to-end delay. Of crucial importance is 5G’s passive infrastructure. This paper therefore presents a techno-economic analysis of the current telecommunication infrastructure, as well as investigating and determining the suitable passive infrastructure for 5G technology deployment. The paper outlines all the passive infrastructure elements and proposes a mathematical model to calculate the capital expenditure, operational expenditure, total cost of investment (TCI) or total cost of ownership (TCO) and net present value (NPV). Experiments are performed using market prices from the national communication authority, the mobile network operators and the tower company of Ghana. Furthermore, a sensitivity analysis is performed to identify the variables that increase the TCO or TCI, NPV and return on investment, and to propose the most economical passive infrastructure architecture for easy implementation of 5G technology in Ghana and Africa.</p>

Highlights

  • Mobile networks all over the world have experienced a tremendous increase in data demand due to technological advancements

  • References (Smail & Weijia, 2017), (Christos Bouras, Vasileios Kokkinos, Anastasia Kollia, 2017), (Bouras, Kokkalis, Kollia, & Papazois, 2018b), (Bouras, Kokkinos, & Papazois, 2014), (Bouras et al, 2018b), (Oughton & Frias, 2018) and (McKinsey & Company, 2018) present techno-economic models and sensitivity analysis (SA) for distributed antenna system (DAS), multi-input-multi-output (MIMO), macrocell and small cell, but the model presented does not take into account the effects of inflation, interest rate, tower height, number of mobile network operators (MNO) per tower, ROI and net present value (NPV) on investments in 5G coupled with passive infrastructure sharing

  • E) SA was again performed on a 40 m, 45 m and 60 m tower using the number of MNO and the variable, one to six MNO were used to investigate the effect of one, two, tree, four, five or six MNO on the capital expenditure (Capex), operational expenditure (Opex), total cost of investment (TCI) or total cost of ownership (TCO) and the ROI

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Summary

Introduction

Mobile networks all over the world have experienced a tremendous increase in data demand due to technological advancements. References (Smail & Weijia, 2017), (Christos Bouras, Vasileios Kokkinos, Anastasia Kollia, 2017), (Bouras, Kokkalis, Kollia, & Papazois, 2018b), (Bouras, Kokkinos, & Papazois, 2014), (Bouras et al, 2018b), (Oughton & Frias, 2018) and (McKinsey & Company, 2018) present techno-economic models and SA for DAS, multi-input-multi-output (MIMO), macrocell and small cell, but the model presented does not take into account the effects of inflation, interest rate, tower height, number of MNO per tower, ROI and NPV on investments in 5G coupled with passive infrastructure sharing. E) SA was again performed on a 40 m, 45 m and 60 m tower using the number of MNO and the variable, one to six MNO were used to investigate the effect of one, two, tree, four, five or six MNO on the Capex, Opex, TCI or TCO and the ROI

Passive Infrastructure Sharing Elements
Telecommunication towers
Diesel generators
Solar energy system
Hybrid power system
Infrastructure sharing on 5G LTE
Economic Mathematical Modelling
Mathematical model formulation
Conventional model formulation
Capex for telecom tower construction
Opex for telecom infrastructure
Total cost of investments
Net present value
Model Verification
Findings
Discussion of Result
Full Text
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