itu regional seminar on costs and tariffs for sg3rg...
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2013. 4. 8
Yongsun Choi (yschoi@inje.edu) Sangwoo Lee (woody@etri.re.kr)
ITU Regional Seminar on Costs and Tariffs for SG3RG-AO
ITU-T SG3RG-AO
Agenda Introduction Steps of BU methodologies Dimensioning of mobile networks The BU-LRIC system in Korea Discussion
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ITU-T SG3RG-AO
Modeling trends worldwide
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Theoretically complex and controversial: mathematical topics involved; resistance to change; and refusal to disclose information [Source ITU-BDT, 2008]
Introduction
ITU-T SG3RG-AO
Principles of BU-LRIC Competitive market Long-run costs: include all the costs that will ever be
incurred in supporting the relevant service demand Incremental costs: incurred in the support of the
increment of demand; avoidable costs in case not supporting the increment
Efficiently incurred costs Costs of supply using modern technology: choice of
network technology (e.g. 3G, 4G); capacity of equipment; purchasing price and operating cost; maintenance cost
[Analysys Mason, 2011]
Introduction
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ITU-T SG3RG-AO
Conceptual issues for BU-LRIC
[Analysys Mason, 2011]
• Type: actual, average, hypothetical • Footprint: national, sub-national • Scale: market share
• network architecture issues • adjustment of nodes: scorched-node or scorched-earth
• Service set supported • traffic volume • wholesale cost, retail cost
• cost increments • depreciation method • weighted average cost of capital
Introduction
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ITU-T SG3RG-AO
LRAIC+ vs. pure LRIC
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Illustration of the LRAIC+ and pure LRIC approaches [Analysys Mason, 2010]
Introduction
ITU-T SG3RG-AO
Top-down vs. Bottom-up LRIC
7 Pros & Cons compared [ITU ICT Regulation toolkit; TRA, 2011]
Introduction
ITU-T SG3RG-AO
Agenda Introduction Steps of BU methodologies Dimensioning of mobile network The BU-LRIC system in Korea Discussion
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ITU-T SG3RG-AO
.. WIK-Consult methodology
WIK-MNCM modeling process [WIK-Consult, 2007] 10
Steps of BU methodologies
ITU-T SG3RG-AO
.. Analysys Mason methodology
New LRIC model for mobile termination in Sweden [Analysys Mason, 2010]
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Steps of BU methodologies
ITU-T SG3RG-AO
.. Tera Consultants methodology
Mobile network model structure [TRA, 2011] 12
Steps of BU methodologies
ITU-T SG3RG-AO
Steps compared by network types
Step Mobile Network
Fixed Core Network Fixed Access Network
1 Network topology Node location and coverage
2 Future demand Network deployment at the street’s segment level
3 Dimensioning the network Full network deployment
4 Current asset prices
5 CAPEX calculation
6 Depreciation
7 & 8 Cost allocation / Operating costs (in flexible order)
9 Service costs Cost per line
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[Source: TRA, 2011]
ITU-T SG3RG-AO
Agenda Introduction Steps of BU methodologies Dimensioning of mobile networks The BU-LRIC system in Korea Discussion
14
ITU-T SG3RG-AO
Dimensioning vs. Planning
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[Source: Holma and Toskala, 2010]
Mobile network dimensioning
ITU-T SG3RG-AO
Requirements of network design The network must include the entire infrastructure
necessary to provide the telecommunication services to users [ITU-BDT, 2008] with the required level of quality, at the lowest possible cost, and within the prevailing technical and economic
constraints However, engineering issues are handled in a
simplified manner with dimensioning
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Mobile network dimensioning
ITU-T SG3RG-AO
Steps of mobile network dimensioning
[Source: Holma and Toskala, 2010] 17
Mobile network dimensioning
ITU-T SG3RG-AO
Area simplification Considers % of each area type: Topography ignored
Artificial equivalent district conversion [WIK-Consultant, 2007]
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Mobile network dimensioning
ITU-T SG3RG-AO
Traffic estimated as a total
Methodology for the calculation of total traffic [Analysys Mason, 2011] 19
Mobile network dimensioning
ITU-T SG3RG-AO
An example of demand consideration
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Example of geographic segmentation of the demand in Chile [ITU-BDT, 2008]
Mobile network dimensioning
ITU-T SG3RG-AO
Demand estimation by population?
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Population and workforce in Australian POAs [WIK-Consult, 2007]
Mobile network dimensioning
ITU-T SG3RG-AO
Simplified coverage analysis Equal cell radii applied by type, w/o propagation analysis
Cell Radii for Traffic Base Stations (km) [NERA, 2010]
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Ovum: Maximum GSM 900 cell site radius (Km) [Ovum, 2006]
Mobile network dimensioning
ITU-T SG3RG-AO
Agenda Introduction Steps of BU methodologies Dimensioning of mobile networks The BU-LRIC system in Korea Discussion
23
ITU-T SG3RG-AO
Features of BU-LRIC model in Korea Practical and detailed approach
Actual traffic volumes of each BTS are collected from operators Utilization of detailed geodata: topography, roads, buildings, etc.
Phased approach Preprocessing of Input data (Traffic volume & Geodata) Network design and CAPEX calculation Visual display network elements on electronic map: helps
validating the efficiency of designed network Calculation of BU-LRIC
Flexible S/W systems Various parameters are easily handled with data tables Easy customization due to stepwise modularized S/W systems
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BU-LRIC system in Korea
ITU-T SG3RG-AO
Overall architecture
Mobile
Investment quantity
Fixed
Investment Cost
Input Data Output Components of BU process • Location and Traffic data of BTS’s • Location of switching stations • Topography, roads, building data
• Asset lifetime • Operating cost Conversion factor • Cost of capital
• Specifications of equipments • Unit prices of equipments
Design of hypothetical Network
CAPEX for Network Elements
Access Charges for Network Elements
• Interconnection tariff for fixed and mobile operators • Interconnection tariff for network elements
• KT: D. nodes, LE, TE; LL, LE-LE, LE-TE, TE-TE • SKT/KTF/LGT: BTS, BTS Sites, BSC, MSC, CGS, HLR, BS-MSC, MSC-MSC
Operating cost
Depreciation
Cost of Capital
LL: Local loop LE: local exchange TE: toll exchange
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BU-LRIC system in Korea
ITU-T SG3RG-AO
Input geodata DEM (Digital Elevation Model)
: Global DEM is available : Scale used: 10 × 10 meters (pixel)
Buildings (height & floorage by pixel): Not used, if n/a
Mobile BU-LRIC
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ITU-T SG3RG-AO
BTS traffic is distributed utilizing coverage analysis
Mobile BU-LRIC
district Cell polygons
63 Existing BTS sites 28
ITU-T SG3RG-AO
Variable size grid segmentation and candidates of BTS sites
Mobile BU-LRIC
grids
127 Candidate BTS sites 29
ITU-T SG3RG-AO
Finally picked efficient BTS sites with capacity-based propagation analysis
Mobile BU-LRIC
48 Efficiently designed BTS sites 30
ITU-T SG3RG-AO
Spreadsheet output: volume and CAPEX of network elements Summary of simulation (for each simulation plan)
District, Operator, Traffic volume, Network type, Target Year Total costs
Categorized details (each subcategorized by network types) BTS: FA, Threshold; # of BTS, unit cost (by # of sectors); sum of BTS costs BTS site (default option: rent): # of site; Deposit, Rental fee (monthly) BSC: Unit cost (min, max); # of BSC, # of BTS, CH; sum of BSC costs BTS-BSC network (default option: rent): type of cable; distance; sum of
BTS-BSC network costs Ancillary equipment: Air-conditioning, fire extinguisher, QDF Powersource equipment: Rectifier, Storage battery, Cabinet panel Radio mast (6M or 40M): # of masts; unit cost; sum of mast costs
Mobile BU-LRIC
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ITU-T SG3RG-AO
Comparison of MN design methods
Steps Conventional
Network Dimensioning
Approach by the Korean model
Network Planning
Input data
Traffic Total traffic Traffic by BTS Traffic nodes ..
Geography Total area (km2) / urbanization (%)
• Terrain • Building • Road network
Plus ..
Analysis Methods • Link budget
• Avg. cell radius Coverage & capacity w/ Propagation analysis
Plus ..
Cell size Same Variable Variable
Output Network Number of Sites • Locations of BTS
• Radio propagation Plus ..
Visualization Not supported Supported Supported
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Mobile BU-LRIC
ITU-T SG3RG-AO
Cost elements of fixed networks
Stn. A
Distribution nodes
Feeder Network Distribution Network RSS Network
Switching Network
Stn. B
10km 10km
50km
10km
12km
10km
12km
10km 20km 20km
20km
F. Node a
F. Node b
RSS
id From / To Type Total distance Non-overlapped
1 Stn. A / Stn. B S. Net 10+50+10 = 70 50+10 = 60
2 Stn. A / RSS RSS Net 10+10+12+10 = 42 12+10 = 22
3 RSS / Node a F. Net 12+20+20 = 52 12+20 = 32
4 Stn. A / Node b F. Net 10+10+10+20+15+20 = 85 10+15+20 = 45
15km
Overlapped
i) 10km 1, 2, 4
ii) 10km 2, 4
iii) 20km 3, 4
i) ii) iii) 100회선
200회선
Fixed BU-LRIC
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ITU-T SG3RG-AO
Spreadsheet output: Volume and CAPEX of network elements Summary of simulation (for each simulation plan)
District, Operator, Target Year, Total costs
Categorized details (e.g., local loop case) RSS network: # of RSS, length of duct, # of manholes, length of
Fiber cable, # of equipments (Switching / Transmission); Costs Feeder Network: # of Feeder nodes, length of Duct, # of Manhole,
length of cable (each Cooper or Fiber); # of equipment (Switching / Transmission); Costs
Distribution Network: # of distribution nodes, length of Duct, # of Manhole, length of cable, # of poles; Costs
Additionally, details of overlapped sections are provided
Fixed BU-LRIC
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ITU-T SG3RG-AO
Display of network elements on e-map
Fixed BU-LRIC
Fiber nodes & network
Copper nodes & network
Selection of network elements to display
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ITU-T SG3RG-AO
Agenda Introduction Steps of BU methodologies Dimensioning of mobile networks The BU-LRIC system in Korea Discussion
36
ITU-T SG3RG-AO
Refined models will contribute?
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Discussion
[Source: Efficient Operator: Methodologies, modeling and application for tariff regulation - www.itu.int/en/ITU-D/Regulatory-Market/Pages/Studies.aspx]
Procedure for the setting of regulated tariffs
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