An Economic Analysis of Femtocell-based MVNO Using Evolution Models
Date Issued
2010
Date
2010
Author(s)
Tseng, Ching-Chieh
Abstract
In view of the increasing number of mobile subscribers and the scarcity of radio resources, we have to maximize the spectrum efficiency in order to meet the requirement of the new wireless applications.
When deploying the HSPA network, the difficulty in acquiring new site locations and the high capital expenditure become the limiting factors to the expansion of network capacity. As a result, the quality of service will deteriorate with the growing number of subscribers due to insufficient capacity. In order to address this issue, it is promising for the operators to bid for a new frequency band and make efficient use of it by deploying femtocells. In this thesis, we propose a model for the femtocell-based mobile virtual network operator (MVNO) and analyze the market evolution of multiple operators with different network deployment strategies.
Our model assumes that the MNOs are facility-based and they assign the new frequency block to the MVNO for deploying the femtocells. We include the marketing index, utility index, attractive index, roaming index in the calculation of the subscribers’ churning behavior.
Based on this model, one can obtain the variation of subscribers and the market ratio via simulation results. In the end, operators can analyze this business investment feasibility.
Subjects
Femtocell
MVNO
Churn Rate
Customer Satisfaction
Type
thesis
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