Cost assessment of multi-tenancy for a 5G broadband network in a dense urban area
Digital Policy, Regulation and Governance
ISSN: 2398-5038
Article publication date: 3 March 2020
Issue publication date: 15 June 2020
Abstract
Purpose
5G systems will enable an improved transmission performance and the delivery of advanced communication services. To meet the expected requirements, operators will need to invest in network modernisation, with the radio access network being the most expensive network component. One possible way for operators to reduce this investment would be via sharing of resources by means of a multi-tenancy concept. This implies that a mobile service provider may use the common infrastructure of one or various infrastructure providers, whereby it provides services to multiple tenants. This paper aims to study the expected cost savings in terms of capital expenditures (CAPEX) and operational expenditures (OPEX) that can be achieved when using a cloudified 5G multi-tenant network.
Design/methodology/approach
A cost model was used. The study period is 2020-2030 and the study area consists of three local districts in central London, UK.
Findings
This paper describes that the total cost reduction achieved when using multi-tenancy for a 5G broadband network in comparison with the case where operators make the investment independently ranges from 5.2% to 15.5%.
Research limitations/implications
Further research is needed to assess the cost implications of network sharing for 5G on a regional or nationwide basis.
Originality/value
Very little quantitative research about the cost implications of network sharing under 5G networks has been published so far. This paper sheds light on the economic benefits of multi-tenancy in a 5G broadband network.
Keywords
Acknowledgements
This work has been performed in the framework of the EU H2020-ICT-2014-2 phase 1 project 5G NORMA and continued under the phase 2 project 5G MoNArch. This information reflects the consortium’s view, but the consortium is not liable for any use that may be made of any of the information contained therein.
Citation
Rendon Schneir, J., Konstantinou, K., Bradford, J., Zimmermann, G., Droste, H., Canto Palancar, R. and Ajibulu, A. (2020), "Cost assessment of multi-tenancy for a 5G broadband network in a dense urban area", Digital Policy, Regulation and Governance, Vol. 22 No. 2, pp. 53-70. https://doi.org/10.1108/DPRG-10-2019-0086
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited