IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v47y2023i7s0308596123001064.html
   My bibliography  Save this article

Urban wireless traffic evolution: The role of new devices and the effect of policy

Author

Listed:
  • Benseny, Jaume
  • Lahteenmaki, Jarno
  • Toyli, Juuso
  • Hammainen, Heikki

Abstract

The emergence of new wireless technologies, such as the Internet of Things, allows digitalizing new and diverse urban activities. Thus, wireless traffic grows in volume and complexity, making prediction, investment planning, and regulation increasingly difficult. This article characterizes urban wireless traffic evolution, supporting operators to drive mobile network evolution and policymakers to increase national and local competitiveness. We propose a holistic method that widens previous research scope, including new devices and the effect of policy from multiple government levels. We provide an analytical formulation that combines existing complementary methods on traffic evolution research and diverse data sources. Results for a centric area of Helsinki during 2020–2030 indicate that daily volumes increase, albeit a surprisingly large part of the traffic continues to be generated by smartphones. Machine traffic gains importance, driven by surveillance video cameras and connected cars. While camera traffic is sensitive to law enforcement policies and data regulation, car traffic is less affected by transport electrification policy. High-priority traffic remains small, even under encouraging autonomous vehicle policies. Based on peak hour results, we suggest that 5G small cells might be needed around 2025, albeit the utilization of novel radio technology and additional mid-band spectrum could delay this need until 2029. We argue that mobile network operators inevitably need to cooperate in constructing a single, shared small cell network to mitigate the high deployment costs of massively deploying small cells. We also provide guidance to local and national policymakers for IoT-enabled competitive gains via the mitigation of five bottlenecks. For example, local monopolies for mmWave connectivity should be facilitated on space-limited urban furniture or risk an eventual capacity crunch, slowing down digitalization.

Suggested Citation

  • Benseny, Jaume & Lahteenmaki, Jarno & Toyli, Juuso & Hammainen, Heikki, 2023. "Urban wireless traffic evolution: The role of new devices and the effect of policy," Telecommunications Policy, Elsevier, vol. 47(7).
  • Handle: RePEc:eee:telpol:v:47:y:2023:i:7:s0308596123001064
    DOI: 10.1016/j.telpol.2023.102595
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596123001064
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.telpol.2023.102595?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Frias, Zoraida & Pérez Martínez, Jorge, 2018. "5G networks: Will technology and policy collide?," Telecommunications Policy, Elsevier, vol. 42(8), pages 612-621.
    2. Knieps, Günter & Bauer, Johannes M., 2022. "Internet of things and the economics of 5G-based local industrial networks," Telecommunications Policy, Elsevier, vol. 46(4).
    3. Bourreau, Marc & Cambini, Carlo & Hoernig, Steffen, 2015. "Geographic access markets and investments," Information Economics and Policy, Elsevier, vol. 31(C), pages 13-21.
    4. Kivi, Antero & Smura, Timo & Töyli, Juuso, 2012. "Technology product evolution and the diffusion of new product features," Technological Forecasting and Social Change, Elsevier, vol. 79(1), pages 107-126.
    5. Jha, Ashutosh & Saha, Debashis, 2020. "“Forecasting and analysing the characteristics of 3G and 4G mobile broadband diffusion in India: A comparative evaluation of Bass, Norton-Bass, Gompertz, and logistic growth models”," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    6. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    7. Meade, Nigel & Islam, Towhidul, 2006. "Modelling and forecasting the diffusion of innovation - A 25-year review," International Journal of Forecasting, Elsevier, vol. 22(3), pages 519-545.
    8. Rendon Schneir, Juan & Ajibulu, Ade & Konstantinou, Konstantinos & Bradford, Julie & Zimmermann, Gerd & Droste, Heinz & Canto, Rafael, 2019. "A business case for 5G mobile broadband in a dense urban area," Telecommunications Policy, Elsevier, vol. 43(7), pages 1-1.
    9. Grant-Muller, Susan & Usher, Mark, 2014. "Intelligent Transport Systems: The propensity for environmental and economic benefits," Technological Forecasting and Social Change, Elsevier, vol. 82(C), pages 149-166.
    10. Riikonen, Antti & Smura, Timo & Kivi, Antero & Töyli, Juuso, 2013. "Diffusion of mobile handset features: Analysis of turning points and stages," Telecommunications Policy, Elsevier, vol. 37(6), pages 563-572.
    11. Lim, Jinyang & Nam, Changi & Kim, Seongcheol & Rhee, Hongjai & Lee, Euehun & Lee, Hongkyu, 2012. "Forecasting 3G mobile subscription in China: A study based on stochastic frontier analysis and a Bass diffusion model," Telecommunications Policy, Elsevier, vol. 36(10), pages 858-871.
    12. Blind, Knut & Niebel, Crispin, 2022. "5G roll-out failures addressed by innovation policies in the EU," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    13. Lehr, William & Queder, Fabian & Haucap, Justus, 2021. "5G: A new future for Mobile Network Operators, or not?," Telecommunications Policy, Elsevier, vol. 45(3).
    14. Bauer, Johannes M. & Bohlin, Erik, 2022. "Regulation and innovation in 5G markets," Telecommunications Policy, Elsevier, vol. 46(4).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaume Benseny & Jarno Lahteenmaki & Juuso Toyli & Heikki Hammainen, 2023. "Urban wireless traffic evolution: the role of new devices and the effect of policy," Papers 2310.14406, arXiv.org.
    2. Sahebali, M.W.W. & Sadowski, Bert M. & Nomaler, O. & Brennenraedts, R., 2021. "Rolling out of fibre optic networks in intermediate versus urban areas: An exploratory spatial analysis in the Netherlands," Telecommunications Policy, Elsevier, vol. 45(5).
    3. Saurabh Panwar & P. K. Kapur & Ompal Singh, 2021. "Predicting diffusion dynamics and launch time strategy for mobile telecommunication services: an empirical analysis," Information Technology and Management, Springer, vol. 22(1), pages 33-51, March.
    4. Riikonen, Antti & Smura, Timo & Töyli, Juuso, 2016. "The effects of price, popularity, and technological sophistication on mobile handset replacement and unit lifetime," Technological Forecasting and Social Change, Elsevier, vol. 103(C), pages 313-323.
    5. Vesselkova, Alexandr & Riikonena, Antti & Hämmäinena & Heikki, 2015. "Evolution of mobile handset feature dependences," 26th European Regional ITS Conference, Madrid 2015 127192, International Telecommunications Society (ITS).
    6. Jha, Ashutosh & Saha, Debashis, 2020. "“Forecasting and analysing the characteristics of 3G and 4G mobile broadband diffusion in India: A comparative evaluation of Bass, Norton-Bass, Gompertz, and logistic growth models”," Technological Forecasting and Social Change, Elsevier, vol. 152(C).
    7. Rossi, Maria Alessandra, 2022. "The advent of 5G and the non-discrimination principle," Telecommunications Policy, Elsevier, vol. 46(4).
    8. Kumar, Rajeev Ranjan & Guha, Pritha & Chakraborty, Abhishek, 2022. "Comparative assessment and selection of electric vehicle diffusion models: A global outlook," Energy, Elsevier, vol. 238(PC).
    9. Ahokangas, Petri & Matinmikko-Blue, Marja & Yrjölä, Seppo & Hämmäinen, Heikki, 2021. "Platform configurations for local and private 5G networks in complex industrial multi-stakeholder ecosystems," Telecommunications Policy, Elsevier, vol. 45(5).
    10. Heikkilä, Jussi & Rissanen, Julius & Ali-Vehmas, Timo, 2023. "Coopetition, standardization and general purpose technologies: A framework and an application," Telecommunications Policy, Elsevier, vol. 47(4).
    11. Edward J. Oughton & William Lehr, 2022. "Surveying 5G Techno-Economic Research to Inform the Evaluation of 6G Wireless Technologies," Papers 2201.02272, arXiv.org, revised Jan 2022.
    12. Markendahl, Jan & Beckman, Claes, 2022. "Can local 5G networks using local spectrum be used as platform for digitalization of industrial systems and services?," 31st European Regional ITS Conference, Gothenburg 2022: Reining in Digital Platforms? Challenging monopolies, promoting competition and developing regulatory regimes 265657, International Telecommunications Society (ITS).
    13. Briglauer, Wolfgang & Dürr, Niklas S. & Gugler, Klaus, 2019. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," ZEW Discussion Papers 19-026, ZEW - Leibniz Centre for European Economic Research.
    14. Michelsen, Carl Christian & Madlener, Reinhard, 2016. "Switching from fossil fuel to renewables in residential heating systems: An empirical study of homeowners' decisions in Germany," Energy Policy, Elsevier, vol. 89(C), pages 95-105.
    15. Berrin Aytac & S. Wu, 2013. "Characterization of demand for short life-cycle technology products," Annals of Operations Research, Springer, vol. 203(1), pages 255-277, March.
    16. Wolfgang Briglauer & Michał Grajek, 2021. "Effectiveness and efficiency of state aid for new broadband networks: Evidence from OECD member states," ESMT Research Working Papers ESMT-21-01, ESMT European School of Management and Technology.
    17. Mossberger, Karen & LaCombe, Scott & Tolbert, Caroline J., 2022. "A new measure of digital economic activity and its impact on local opportunity," Telecommunications Policy, Elsevier, vol. 46(1).
    18. Zhenhua Xu & Fuyi Ci, 2023. "Spatial-Temporal Characteristics and Driving Factors of Coupling Coordination between the Digital Economy and Low-Carbon Development in the Yellow River Basin," Sustainability, MDPI, vol. 15(3), pages 1-23, February.
    19. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    20. Mikko Myrskylä & Joshua R. Goldstein, 2010. "Probabilistic forecasting using stochastic diffusion models, with applications to cohort processes of marriage and fertility," MPIDR Working Papers WP-2010-013, Max Planck Institute for Demographic Research, Rostock, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:47:y:2023:i:7:s0308596123001064. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.