Business opportunities through UMTS-WLAN networks

This article outlines the economic feasibility of mobile operators that combine nation-wide mobility with 3G networks and hot spot coverage with WLANS. WLANs are based on HIPERLAN/2 architecture and the UMTS network exploits WCDMA/FDD technology. The evalua-ted business cenarios are focused on two different deployment areas, in terms of demogra-phic characteristics and mobile penetration: a large and a small European country. The business case.spans 2002 to 2011 with UMTS ' roll-out year in 2002 and W1.AN'S in 2004, cove-ring indoor hot-spot areas (stations, airports, stadiums, etc.) where demand is high. The demand for this UMTS-W~N roaming case is evaluated based on observations from Europe's current mobile market and its evolution. Usage scenarios of different service packages cor-responding to both residential and business markets have been taken into account. Direct investments and operational costs as well as revenue streams from traffic have been calcu-lated. The methodology and the tool developed in ACTS-TERA [1] and IST-TONIC [2] projects have been utilized for this case study. Economic conclusions have been derived, presented and discussed using key profitability factors. Profitability for all scenarios and business pro-files has been calculated, presented and discussed. It includes a sensitivity analysis in order to identify, the major opportunities and threats, for specific " service sets as well as critical parameters and uncertainties. A wide audience from mobile operators and service provi-ders to retail companies interested in entering the 3G market, can exploit his information