3G LTE Migration Costs
3G LTE Migration Costs
1st October , 2009
Europe : Many 3G mobile operators are considering the cost of migration to 3G LTE networks. The cost for a leading operator in the US to migrate to 3G LTE will cost over 1.5 US dollars in the first year, whilst an operator in Europe is likely to face costs of over 850 US dollars.
With the economice down many 3G mobile operators are focussing on reducing capital expenditure and any way of rolling out 3G LTE – such as network sharing – are being scrutinised. Aircom Internation have produced a 3G LTE Cost Calculator (www.aircominternational.com/lte_calculator ) and a set of main regional costs are shown above. The costs factor in additional 3G LTE radio sites, equipment and core and backhaul upgrades.
AIRCOM indicate that in the current financial climate some 3G mobile operators are struggling to meet such financial commitments. Additionally, AIRCOM forecast that 3G mobile operators need accept that the existing techniques used to drive efficiencies and revenues will not be applicable to 3G LTE and new business models are necessary.
The significant investment required for LTE deployment could also see mobile operators globally embracing network sharing as a means of reducing CAPEX and OPEX. Other innovative ways of lowering costs include the automation of key optimisation processes through the roll out of self-organising networks (SON) and the deployment of femtocells within a network to cost-effectively provide macro network offload capabilities as well as indoor coverage solutions.
"Despite the financial commitment required, there can be no doubting the tremendous potential of LTE technology in taking mobile services to the next level," added Rice-Jones of AIRCOM. "LTE represents a major evolution and mobile operators must take an intelligent approach to network migration. With careful planning however, LTE will deliver sufficient network capacity and data speeds to further enhance the delivery of high bandwidth services to consumers globally."
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