Mobile Network Evolution toward 3G: A Techno-Economic Analysis

This paper addresses technical and economical aspects to configure a Third Generation (3G) mobile cellular network. Major components of costs and revenues and the major stakeholders are identified and a methodology is developed to compare the main factors affecting the business case of 3G operators and builds a model that estimates the profitability of different scenarios. An open issue, both from the technical and economic points of view, is to identify the requirements and the necessary steps to migrate from 2G to 3G mobile cellular networks. A number of mobile network evolution strategies toward 3G were generated and evaluated using the TERA model. Initial economic conclusions have been derived, presented and discussed using key profitability factors such as Net Present Value (NPV), and Payback Period.