FACULTY OF INFORMATICS
EVALUATING BUSINESS SCENARIOS FOR USE OF
GEO-LOCATION DATABASE IN TV WHITE
SPACES FROM THE OPERATOR POINT OF VIEW
7TH COST-TERRA MEETING
18th April 2013, Thessaloniki
OUTLINE
FOCUSES OF THE PRESENTATION
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Key concepts:
◦ Dynamic
Spectrum
Access
Information Infrastructure (DSA II);
◦ GDB within the context of DSAII;
◦ Techno economic modelling for
evaluating business scenarios.
GDB scenario matrix.
Evaluation
of
Business
scenarios for the use of GDB in
TVWS from the operator point of
view.
Research in
progress
KEY CONCEPTS
DYNAMIC SPECTRUM ACCESS INFORMATION INFRASTRUCTURE
Figure 1. DSA II
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KEY CONCEPTS
STAKEHOLDERS
Directly impacted by DSA II:
◦ Operators and services providers: to reach the most positive
value through DSA II enabled services;
◦ Manufacturers: to benefit from developing new technologies, new
infrastructure equipment;
◦ Administrators: to gain through logistics management of the
physical network.
Indirectly impacted:
◦ Users: to benefit from the advanced features of DSA.
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KEY CONCEPTS
RULES AND PRACTICES FOR RADIO SPECTRUM USAGE
Standards:
◦ Analysis of standards should answer such questions as: which
technologies must be standardized? What is the environment of
complementary and competing standards?
Business Models:
◦ Business Models should help better understand how DSA II can
be deployed.
Regulations:
◦ Analysis of the regulation environment should answer such a
question as: what are all the relevant rules and how stakeholders
could benefit from playing by these rules?
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KEY CONCEPTS
COGNITIVIO (CR) PARADIGM
Radio frequencies – a prie-defined set of radio frequency
bands and rules for accessing (and using) them. Some initial prime
candidates of frequencies where CR paradigm could be considered
for deployment:
◦ TVWS;
◦ 1452-1492 MHz and VHF T-DAB band;
◦ 2.3-2.4 GHz .
DSA/CR System – a technology toolbox to allow dynamic
access to spectrum by a number of users.
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KEY CONCEPTS
DYNAMIC SPECTRUM ACCESS INFORMATION INFRASTRUCTURE
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Figure 2. Relationships between different DSA II elements
KEY CONCEPTS
GDB WITHIN THE CONTEXT OF DSAII
Geo-location database (GDB) as enabler of CR is one
of major elements of DSA II that becomes essential for
ensuring overall efficiency of radio spectrum that is so
badly needed for new emerging wireless communication
services.
◦ it becomes important to analyze economic feasibility of
GDB use and access from different points of views
within the future DSA II architectures and services:
what is the role of GDB in enabling various wireless
communication services;
how clients/devices of different wireless services will be accessing
the same/shared GDB;
how GDB business model that would be acceptable/make sense
to different stakeholders can be found.
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KEY CONCEPTS
TECHNO ECONOMIC MODELLING FOR EVALUATING BUSINESS
SCENARIOS
Market service definition refers to:
• geographical area;
• market segments;
• offered services;
• service penetration;
• usage amounts;
• competition and market shares, churn;
• pricing model and tariffs;
• customer acquisition, retention and care.
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Figure 4. Techno-economic modelling process
KEY CONCEPTS
TECHNO ECONOMIC MODELLING FOR EVALUATING BUSINESS
SCENARIOS
Technology definition refers to:
• technical architecture and components;
• technical performance of components;
• cost of components;
• costs of planning, deploying, and operating components.
Industry architecture definition refers to:
• mapping technical components and activities to roles and actors;
• relationships between roles and actors.
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Figure 4. Techno-economic modelling process
KEY CONCEPTS
TECHNO ECONOMIC MODELLING FOR EVALUATING BUSINESS
SCENARIOS
Revenue modelling refers to:
• direct revenues from own customers;
• indirect revenues, e.g. interconnection, roaming, advertisements;
• revenue-sharing between actors.
Cost modelling refers to:
• Investments;
• operational expenditures;
• cost allocation to different actors.
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Figure 4. Techno-economic modelling process
KEY CONCEPTS
TECHNO ECONOMIC MODELLING FOR EVALUATING BUSINESS
SCENARIOS
Discounted cash flow analysis refers to:
• net present value;
• internal rate of return;
• payback time.
And finally sensitivity analysis refers to:
• NPV sensitivity to changes in variables (e.g. the number of operators);
• scenarios, e.g. best and worst case;
• what-if analyses;
• monte Carlo simulation.
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Figure 4. Techno-economic modelling process
GDB SCENARIO MATRIX
MATCHING GDB SCENARIOS WITH APPROPRIATE ONES
◦ Unlicensed scenario →
Competitive
market
scenario;
◦ “one to all” scenario →
Restricted
market
scenario;
◦ Market Scenario →
Hybrid market scenario;
◦ Flexible scenario →
Flexible market scenario.
1 Figure 5. Business scenarios for GDB service deployment
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GDB SCENARIO MATRIX
MATCHING GDB SCENARIOS WITH APPROPRIATE ONES
◦ “one to all” scenario →
Restricted
market
scenario;
◦ Flexible scenario →
Flexible market scenario;
◦ Unlicensed scenario →
Competitive
market
scenario;
◦ Market Scenario →
Hybrid market scenario.
Figure 6. Business scenario matrix for GDB service deployment
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GDB SCENARIO MATRIX
MATCHING GDB SCENARIOS WITH APPROPRIATE ONES
◦ Technical architecture address the question on how future of
GDB would look like; refers to the technology that determines
differences between existing and final architectures.
◦ Industry
architecture
relates
to
the
scope of the GDB
in terms of markets
and industries in
which it competes
as well as to the
ways in which roles
are combined.
Figure 6. Business scenario matrix for GDB service deployment
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EVALUATION OF BUSINESS SCENARIOS
SOLUTIONS
Two solutions:
1) Mobile operators (MO) offers GDB-based mobile services;
2) GDB offers services to end-users utilizing MO’s network.
Figure 7. Business scenarios for GDB service deployment
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EVALUATION OF BUSINESS SCENARIOS
POSSIBLE SOLUTIONS
1-3 numbers refers to the need for upgrades of:
• Extra gateway in MO’s network;
• Base station software upgrade;
• Base station and antenna system hardware upgrade.
Figure 7. Business scenarios for GDB service deployment
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SUMMING-UP
Q&A SECTION
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Presented „research framework“ will allow expanding the GDB
business model analysis in the future studies, taking into account the
same method for modelling new business models for others groups
of established stakeholders’ of DSA II and then seeing if there can
be any common business model derived from the multitude of
different models in order to get broader view of impact of CR
paradigm to the wireless telecommunication services;
The results will lead to a model of
cost and revenues in which different
GDB architectures are compared
from different point of views.