In this paper an all-IP Enhanced-Universal Mobile Telecommunications System (E-UMTS) is considered, where enhancements include link level behavior, high-speed downlink packet access (HSDPA) channel, resource management, Diffserv architecture, and Radio Resource Management schemes. An overview of E-UMTS deployment scenarios and service needs is presented based on the views of relevant players. Deployment and mobility scenarios are considered, including expected population density and usage of service mix for three environments, namely offices, urban/vehicular, and business city center. In addition, based on population and service penetration values, E-UMTS traffic generation and activity models are described and characterized. Based on these scenarios and characterizations, system level simulations are carried out and the enhanced service quality performance is demonstrated, including blocking probability, handover failure probability and end-to-end delay in each deployment scenario. By using system level simulations, services and environmental conditions can be mapped into deployment strategies (and supported system capacity) whose evaluation is essential prior to field trials and real implementation. On the one hand, costs depend on the prices of the spectrum, equipment, operation and maintenance, as well as on the number of cells which, in turn, depends on the cell radius. On the other, revenues depend on the price per MB and on the supported throughput. As the goal of operators and service providers is to maximize the profit, the profit in percentage was obtained for the three considered scenarios. Its optimum values are found for cell radii around 31, 257, and 310 m for offices, vehicular and business city center scenarios, respectively.
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