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TecnO-ecoNomICs of IP optimised networks and services

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Profits for universal mobile telecommunication systems

Contrary to the view as expressed by a number of telecommunication analysts, a recent study has shown that some operators can realise profits from combined WLAN and UMTS utilisation.

Digital Economy

In order for such companies to achieve profitability, TONIC (TechnO-ecoNomICs of IP (Internet Protocol) optimised Networks and Services) has evaluated new communication networks and services for UMTS (Universal Mobile Telecommunication Services). The results of this study have proven that there can be a positive impact even if the direct implementation of a WLAN (Wireless Local Area Network) is not crucial to the UMTS. TONIC identified the Information Society's economic solutions primarily for the utilisation of broadband technologies and IP service scenarios. Thus the development and exploitation of techno-economical models were generated from the analysis of the associated risk factors, which in turn resulted in establishing the key economic indicators. From these results and the risk analysis TONIC formulated various recommendations for optimum rollout strategies. The recommendations were based on three principle objectives supported by three technical achievements. They included the assessment of new business models, the evaluation of the costs and benefits, service definition and traffic impact, demand forecasting and tariff modelling, and network solutions and service scenario modelling. Work description packages then formulated the TONIC goals with the focal emphasis on the evaluation of the different access technologies for offering broadband services and technology selection guidelines. The evaluation of both WLAN and UMTS within the TONIC business case results, argues for the long-term benefits in addition to those generally associated with the short-term. These results therefore contradict some viewpoints that WLAN deployment will destroy 3G-business. And as TONIC points out, such negative business case beliefs have no foundation, especially when the long-term benefits of the 2G-market are still being realised.

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