Techno-economic modeling of value network configurations for public wireless local area access

  • Authors:

  • Michail Katsigiannis;Timo Smura;Thomas Casey;Antti Sorri

  • Affiliations:

  • Department of Communications and Networking, Aalto University, Aalto, Finland 00076;Department of Communications and Networking, Aalto University, Aalto, Finland 00076;Department of Communications and Networking, Aalto University, Aalto, Finland 00076;Nokia Research Center, Nokia Oyj, NOKIA GROUP Helsinki, Finland 200045

  • Venue:
  • Netnomics
  • Year:
  • 2013

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Abstract

The growing amount of mobile data traffic increases the demand for local area network deployments, and therefore is likely to have an effect on the mobile communications ecosystem. Several alternative value network configurations exist giving new business opportunities to different actors, but the attractiveness and success of local area access provisioning remains uncertain. This article analyzes the business of public local area access from the point of view of two potential providers: service application providers, i.e. companies whose core business is to provide information and content services in the Internet, and mobile operators. A quantitative techno-economic model is constructed to quantify the costs and required revenues of operating viable public local area access networks. The results show that the revenue requirements vary between public venue types and value network configurations.