Business Models and Cost/Revenue Optimization

Fernando Velez, Muhammad Kashif Nazir, Abdol-Hamid Aghvami, Oliver Holland, Daniel Robalo

Research output: Chapter in Book/Report/Conference proceedingChapter


This Chapter starts by covering general aspects about the business models for WiMAX and then addresses the cost/revenue optimization for these networks, for cellular configurations without and with relays. In Fixed WiMAX, radio and network planning can be optimised by tuning a cost/revenue function which incorporates de the cost of building and maintaining the infrastructure and the effect of the available resources on revenues. From the cost-benefit analysis, one conclusion of this work is that given today’s hypothesis of price per MByte of information transfer of somewhere between 0.0025 € and 0.010 €, it is clear that, without considering the use of relays, the choice of reuse patterns 3 or 4 with sectorial cells is preferable to the use of omnidirectional cells with reuse pattern, K, of 7, as three times more resources are available in each cell. Besides, in nowadays networks, if there is a need for sparse BS deployments whilst reducing costs, K = 1 may be a solution, as it presents higher profit for the longest coverage distances. In future networks, when costs will be lower, the advantage of sectorization is kept and will drive the deployment of tri-sectorization forward. Nevertheless, in this case K = 1 will not be advantageous with tri-sectorization for the longest coverage distances anymore. This study also concludes that cell radii in the range 1000–1500 m is preferable, corresponding to profit in percentage terms of near the achievable maximum, while keeping costs acceptable. The WiMAX cost-benefit optimization is also explored for the case where relays are used to help on improving coverage while mitigating the interference. Results show that the use of relays with no sectorization in the BS leads to a lower profit (K = 3). Also the use of sectorization (an example is presented for K = 1) does not seem to enable larger profit. The optimum (maximum) values occur for coverage distances up to 1,000 m. In the DL, when the price per MB, R 144, increases from 0.0025 €/min to 0.005 €/min the profit increases more than 100%.
Original languageEnglish
Title of host publicationWimax Networks
Subtitle of host publicationTechno-Economic Vision and Challenges
EditorsRamjee Prasad, Fernando Velez
Place of PublicationDordrecht ; London
PublisherSpringer Netherlands
Number of pages27
ISBN (Print)9789048187515
Publication statusPublished - 2010


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