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Business modeling for future broadband PPDR networks


Title: Wykorzystanie platformy IMS do integracji us ug w bramie interoperacyjnej Author: Henryk Gierszal Last modified by: Henryk Gierszal Created Date – PowerPoint PPT presentation

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Title: Business modeling for future broadband PPDR networks

Business modeling for future broadband PPDR
  • Henryk Gierszal, Karina Pawlina, Piotr Tyczka,
    Krzysztof Romanowski, Damien Lavaux, Christos

Presentation plan
  • Introduction
  • End-users requirements
  • Business models for PPDR system acquisition and
  • Business-oriented tool
  • A case study analysis
  • Conclusions

  • Due to evolution of technologies and some new
    needs required by PPDR organizations the
    migration to broadband mobile networks becomes an
    emerge issue to be deployed in near future in an
    efficient way
  • The new services needed by PPDR agencies include
    broadband data and even video transmission but
    voice and narrowband data remain indispensable
    for every day

End-user requirements identified
  • Three operational scenario were defined by
  • Routine day-to-day activities
  • Major events - planned in advance
  • higher communication needs are needed as compared
    to routine day-to-day activities but the location
    and requirements are known in advance
  • Major incidents or disasters - not pre-planned
  • higher communication needs have to be available
    at very short notice and the location and
    requirements are not known in advancea

Main services needed by PPDR
Business models
  • Analysis of business models allows finding an
    optimum solution for acquisition of the new
    network that can balance CAPEX and OPEX
  • Three strategic groups have been identified
  • dedicated networks they are built by PPDR
    organizations themselves, or the building process
    and then operation of the new network are done by
    the commercial operator based on a turnkey
  • commercial networks PPDR services are provided
    by commercial operators and are based on their
    public networks that can be fitted to end-users
    requirements in some areas
  • hybrid networks some parts of the broadband
    infrastructure are based on dedicated network(s)
    acquired by PPDR organizations, and
    simultaneously existing public network(s) are
    deployed in the other parts of that

Models for system acquisition
Levels of business modelling
  • technical identification of functionalities and
    the dimension of a communication system
  • financial financial analysis including cash
    flow, CAPEX and OPEX
  • economic estimation of different economic
    benefits that an end-user can gain due to
    acquiring a new system that are expressed in
  • organizational allocation of investments and
    operating/managing/maintaining costs associated
    with a communication system into entities of
    three roles owner, operator (MNO or MVNO) or user

Steps in configuration of PPDR system using a
tool developed
  • 31 functionalities classified into 6 groups
  • up-to three system technologies selected among
    LTE, TETRA, TEDS, DMR, P.25, TETRAPOL, cdma2000,
    WiMAX and SATCOM
  • parameters for network elements of each system
  • coverage
  • number of terminals, BSs, exchanges, NOCs
  • backhaul and backbone networks

  • Bottom-up analysis provides a set of
    financial-economic factors to assess the business
    efficiency of a scenario
  • a scenario creats a superposition of all deployed
    network elements belonging to all systems
  • each system can be based on seperate business
    model for its acquisition
  • Top-down analysis adjusts the value of parameters
    (e.g. dimension of a system, a number of
    terminals, a number of base stations, a number of
    years of investment) for assumed maximum expenses
  • modification of parameters introduced in the
    bottom-up analysis in order to tune and optimize
    the overall result for a known budget

Result template
  • configuration characteristic of each network
    component of the system
  • dimensions of each network, resulting
    functionalities, etc.
  • financial data and efficiency indicators
    presented in an aggregated or break-down form
  • Total Cost of Ownership (TCO), CAPEX and OPEX,
    Net Present Value (NPV), Internal Rate of Return
  • economic data and efficiency indicators presented
    in an aggregated or break-down form
  • Economic NPV, Economic IRR, Benefit-Cost ratio
    (B/C), Dynamic Generation Cost (DGC)
  • organizational analysis
  • Strength, Weakness, Opportunity, Threat (SWOT)

A case study
  • Polish energy sectors company is going to
    acquire a digital system and wants to compare two
  • TETRA built by its own
  • leased services based on CDMA2000 network
    provided by a commercial network operator
  • no. of terminals
  • 7,500 handheld
  • 15,000 for data transmission
  • no. of BSs 250
  • a lifetime of the project 15 years
  • investment period 4 years
  • a number of masts existing 30, to be built
    40 and to be leased 30

  • CAPEX, OPEX and TCO can be expressed in absolute
    and relative values

Business model OPEX per km2 TCO per km2
System 1 Own network - TETRA 569.62 57.78
System 2 Leased service - CDMA 2554.41 173.06
  • broadband PPDR networks based on LTE/LTE-A emerge
  • their acquisition depends on many factories but
    overall costs seem to be a significant constraint
    for the decision-makers
  • hybrid business models can ensure a reasonable
    trade-off between TCO and many quality parameters
    (Quality of Service, coverage, etc.)
  • to simulate these costs one can use the tool for
    technical and financial-economic analyses because
    it can support the PPDR decision-makers to select
    the optimum strategy in order to acquire a mobile
    communication system that fits to their new