Life-cycle cost modelling for NFV/SDN based mobile networks

The paper presents a detailed techno-economic model for LTE networks with inherent coupling of CAPEX and OPEX cost for each real or virtualized network element. The life-cycle phases of a network from the idea to set up a certain product or service, followed by the installation and operation of the network up to the decommissioning of the equipment are taken into account. The work was performed within the EU Celtic Plus project SIGMONA [1] and makes use of survey results about reasonable network scenarios and deployment variances, which was carried out among the partners. The resulting set of assumptions is the base of the techno-economic model presented here. The structure of the model is documented and certain modelling techniques are described. Many scenarios are considered in the model, which address the split options to compose the network out of real or virtualized network (function) elements, consider the components being owned or rented as well as to deploy optimization means like the 6WINDGate technology [2] to foster packet forwarding efficiency. The software "Strategic Telecoms Evaluation Model (STEM)" [3] was used for the model development and result analysis.