Business opportunities throughUMTS-WLAN networks

This article outlines the economic feasibility of mobile operators that combine nationwide mobility with 3G networks and hot spot coverage withWLANS, WLANS are based onHIPERLAN/2 architecture and theUMTS network exploitswCDMA/FDD technology. The evaluated business scenarios are focused on two different deployment areas, in terms of demographic characteristics and mobile penetration: a large and a small European country. The business case spans 2002 to 2011 withUMTS’ roll-out year in 2002 andWLAN’s in 2004, covering indoor hot-spot areas (stations, airports, stadiums, etc.) where demand is high. The demand for thisUMTS-WLAN roaming case is evaluated based on observations from Europe’s current mobile market and its evolution. Usage scenarios of different service packages corresponding to both residential and business markets have been taken into account. Direct investments and operational costs as well as revenue streams from traffic have been calculated. The methodology and the tool developed inACTS-TERA 1] andIST-TONIC 2] projects have been utilized for this case study. Economic conclusions have been derived, presented and discussed using key profitability factors. Profitability for all scenarios and business profiles has been calculated, presented and discussed. It includes a sensitivity analysis in order to identify the major opportunities and threats, for specific service sets as well as critical parameters and uncertainties. A wide audience from mobile operators and service providers to retail companies interested in entering the 3G market, can exploit this information.