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Comparative techno-economic evaluation of LTE fixed wireless access, FTTdp G.fast and FTTC VDSL network deployment for providing 30 Mbps broadband services in rural areas

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  • Ioannou, Nikos
  • Katsianis, Dimitris
  • Varoutas, Dimitris

Abstract

In rural areas in Europe, the deployment of High-Speed Broadband access networks lags far behind the urban and suburban areas due to difficulties of fiber rollout in the final meters. FTTC VDSL is the most widespread technology used for NGA network deployments in Europe but the coverage of VDSL networks is still limited in rural areas. FTTdp networks using G.fast have been proposed as a cost-effective and future-proof alternative to FTTH and FTTB especially in rural areas where FTTC and VDSL cannot always deliver service speeds of 30 Mbps which is the minimum bandwidth defined in the European Digital Agenda as a target to be met by 2020. However, the new target of EU Commission for Gigabit Society and 100 Mbps connections, upgradable to 1 Gbps, for all households in 2025 are unlikely to be achieved by VDSL Vectoring and other copper-based technologies. On the other hand, Fixed Wireless Access (FWA) networks based on LTE technology can be used as a “last mile” solution to provide high-speed broadband access to areas where fixed broadband is limited. LTE technology offers high-speed connections able to support internet browsing and IP services, while it can theoretically support up to 300 Mbps depending on network load and sharing. Thus, it can be considered a viable alternative to other fixed network solutions especially when considering future upgrades to 5G networks that promise gigabit speeds per user. In this paper, a techno-economic study is performed to assess the feasibility of an FWA network deployment based on LTE technology in comparison to FTTdp G.fast and FTTC VDSL network rollout for delivering service speeds of 30 Mbps in rural areas. A variety of different population density, competition and regulation policy scenarios is considered. Cash flow results are presented and standard financial indexes for the business cases are discussed. The results are being assessed through a sensitivity and risk analysis to determine the most influential factors on the return on the investment. Furthermore, the (non) profitability of these cases and the subsidization needed from structural funds are analyzed. The results are aimed to contribute to the debate over network evolution scenarios among academia, industry, regulators, policy makers and governments.

Suggested Citation

  • Ioannou, Nikos & Katsianis, Dimitris & Varoutas, Dimitris, 2020. "Comparative techno-economic evaluation of LTE fixed wireless access, FTTdp G.fast and FTTC VDSL network deployment for providing 30 Mbps broadband services in rural areas," Telecommunications Policy, Elsevier, vol. 44(3).
    • Handle: RePEc:eee:telpol:v:44:y:2020:i:3:s0308596118303860
    DOI: 10.1016/j.telpol.2019.101875
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    References listed on IDEAS

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    1. Rendon Schneir, Juan & Xiong, Yupeng, 2016. "A cost study of fixed broadband access networks for rural areas," Telecommunications Policy, Elsevier, vol. 40(8), pages 755-773.
    2. Feijóo, Claudio & Ramos, Sergio & Armuña, Cristina & Arenal, Alberto & Gómez-Barroso, José-Luis, 2018. "A study on the deployment of high-speed broadband networks in NUTS3 regions within the framework of digital agenda for Europe," Telecommunications Policy, Elsevier, vol. 42(9), pages 682-699.
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    2. Alba Vázquez-López & Martín Barrasa-Rioja & Manuel Marey-Perez, 2021. "ICT in Rural Areas from the Perspective of Dairy Farming: A Systematic Review," Future Internet, MDPI, vol. 13(4), pages 1-18, April.
    3. Lee, Hyeongjik & Jeong, Seonkoo & Lee, Kwanghee, 2020. "Developing the Method for Estimating the Costs of Providing Broadband Universal Service: Korean Case," ITS Conference, Online Event 2020 224865, International Telecommunications Society (ITS).
    4. Ferrandis, Jesús & Ramos, Sergio & Feijóo, Claudio, 2021. "An assessment of estimation models and investment gaps for the deployment of high-speed broadband networks in NUTS3 regions to meet the objectives of the European Gigabit Society," Telecommunications Policy, Elsevier, vol. 45(7).
    5. Laitsou, Eleni & Ioannou, Nikos & Katsianis, Dimitris, 2022. "5G Fixed Wireless Access for rural broadband," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265649, International Telecommunications Society (ITS).
    6. Ioannou, Nikos & Kokkinis, Dimitris & Katsianis, Dimitris & Varoutas, Dimitris, 2023. "Comparative Techno-Economic Evaluation of 5G Infrastructure Sharing Business Models in European Rural Areas," 32nd European Regional ITS Conference, Madrid 2023: Realising the digital decade in the European Union – Easier said than done? 277973, International Telecommunications Society (ITS).
    7. Lee, Hyeongjik & Jeong, Seonkoo & Lee, Kwanghee, 2023. "The South Korean case of deploying rural broadband via fiber networks by implementing universal service obligation and public-private partnership based project," Telecommunications Policy, Elsevier, vol. 47(3).
    8. Laitsou, Eleni & Katsianis, Dimitris, 2021. "Comparative Techno-Economic Evaluation of 5G mobile network deployments in different scale urban areas," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238034, International Telecommunications Society (ITS).
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