Facility owner using TV white space spectrum

4.3.3.1 Scenario A: Infrastructure exists

A facility owner has already a wireless infrastructure with WAP (wireless access points), cabling and connection, switches and routers and AAA services. The service can be provided free of charge to the customers as a complimentary service to the core business or after a fee (one time or subscription).

Strengths

• The main attribute of a facility owner is the core business attraction which requires little or no effort to acquire customers. Thus it can be speculated that no investments are needed for marketing and customer acquisition. • The site owner assumes all roles in value constellation besides provisioning

40 Chapter 4. Business Feasibility Analysis • Able to make short term contracts [33] and core business support [32]. • The usage of secondary spectrum has advantages itself as it provides free-

dom of operation from operators and interference elimination with MBS. • Customer database exists

Weaknesses

• Investments in equipment are needed to upgrade the existing network to femto-able3

Opportunities

• Low entry cost in a new market.

• Indoor capacity for operators or own customers. • No more wall attenuation problem

• Offloads traffic from more costly macrocell networks [35].

• Low cost price of FBS against competing solutions like picocells, DAS and repeaters [44].

Threats

• The level of QoS and QoE towards the customers must overcome the QoS and QoE a best effort Wi-Fi system can provide otherwise it will not be wise to upgrade the system at all.

4.3.3.2 Scenario B: Infrastructure needs to be deployed Strengths

• No marketing and customer acquisition investments are required

• The site owner assumes all roles in value constellation besides provisioning of backbone capacity [32].

• Able to make short term contracts [33] • Core business support [32].

• The usage of secondary spectrum has advantages itself as it provides free- dom of operation from MNO’s.

Weaknesses

• Unlike the previous scenario, no infrastructure exists and thus the initial CAPEX is greater.

• AAA system must be placed and an electronic billing support system to be installed

3_{Particularly, the WAPs need to be replaced with FBS probably LTE-based since the} existing system is IP-based, the cost calculation of which is out of the thesis scope and an AAA server in case the service was free of charge before and thus also an electronic billing support system like JCC will be needed so as the customers prepay for the service.

4.2. Model Construction and Cost Calculation 41 • No customer database

Opportunities

• It is more efficient to design and install a network from the beginning and not modify an existing one like in the previous scenario (from interview). • Indoor capacity for operators or own customers which on the one hand overcomes the wall attenuation problem and on the other offloads traffic from more costly macrocell networks [35].

• Low cost price of FBS against competing solutions like picocells, DAS and repeaters [44].

Threats

• The level of QoS and QoE towards the customers must overcome the QoS and QoE a best effort Wi-Fi system can provide otherwise it will not be wise to install the system at all.

• It is for this reason that measurements on the available TV white space on the facility location needs to be taken before any plans and changes take place.

4.3.3.3 Scenario C: Roaming agreements

Having a shared femtocell system along the premises that allows for roaming to third party users is highly recommended for a facility owner. By using the term Roaming in this thesis, it is ment that the user camping on a femtocell can receive and originate calls to and from other macrocell cellural networks. While when using the term Offloading, the capacity of the indoor network is rented out to a third-party regardless if roaming agreements exist or not.

Strengths

• System utilization and customer satisfaction is maximized.

• Reduced interference and more licensed spectrum for MBS usage [35]. • The user can subscribe for indoor MBA service and still be able to receive

calls originating outside the facility. Weaknesses

• Coming to an agreement with all existing operators might be cumbersome and hard to achieve and is proportional to the network size and capacity of the facility owner.

Opportunities

• As the facility owner will be paid for the roaming services, the profit generation will be higher with roaming agreements

• In a multi-operator environment, the cost savings could be up to 66 • Offloading data capability.

Threats

• It is extremely difficult to make national roaming agreements at this point (from interview)

42 Chapter 4. Business Feasibility Analysis 4.3.3.4 Scenario D: No roaming agreements

Strengths

• Low-cost indoor capacity network for renting purposes Weaknesses

• With no roaming agreements, the facility owner cannot serve any users with existing subscriptions to third party companies.

• The main issue arises when a user inside the facility wants to use both the local MBA services offered and the cellular connection with the MNO. In this case the user will have to choose one between the two services as both cannot co-exist, creating a cumbersome problem for both the user and the FO.

Opportunities

• Revenue generation by providing offloading services. Threats

• Fewer customers

• Not providing national roaming could be a show stopper in this scenario4_.