Background

For a Nordic operator, Omnitele carried out the valuation of 700 MHz spectrum as input to spectrum auction.

Solution

Omnitele modelled and simulated different scenarios with varying input parameters, including:

• Different spectrum band combinations, with both present spectrum holdings and potential new spectrum bands to be acquired.
• QoS/Throughput objectives
• Traffic model with varying traffic growth factors
• Technology development & costs thereof
• Regulatory constraints

The output of the project was a valuation per spectrum band and prioritised spectrum options as input for the customer’s auction strategy

Comparison to assess the value of license(s) with a set QoS target

The delta indicates the production value of acquiring certain licenses: saved NW investment CAPEX/OPEX with spectrum

Customer  benefits

With the outcome of the scenario analysis and the associated cost scenarios, the customer was able to compile a complete spectrum auction strategy and bid for the most optimal spectrum band and bandwidth, knowing its value. The customer succeeded in obtaining the spectrum band and bandwidth calculated in the most optimal scenario.

Scenario Modelling

• All arguments that will have an impact on the future QoS/QoE development in the network were taken into consideration:
• Present & available spectrum bands (700 MHz, 3.5 GHz, 26 GHz), Traffic growth & distribution, Present and future functionalities offered by vendors, CAPEX/OPEX of network nodes & operations, Terminal functionalities, Regulatory constraints, present network Architecture & Topology, and Operator Business Objectives

QoS Prediction

• As part of the Business Objectives  future QoS targets have been set and QoS development has been  predicted for various scenarios
• Cell specific network expansion measures for all simulated scenarios have been predicted

CAPEX/OPEX Optimisation

• 5 spectrum scenarios with alternative business objectives and spectrum band selections have been predicted
• For each scenario it was established what the QoS contribution versus investment/cost level of each capacity enhancement solution was, including adding new spectrum. This ratio was optimised for highest value
• The NPV of the differences between simulated spectrum scenarios was determined in order to calculate the production value of the respective frequency bands (relative to null scenario with no new spectrum addition)

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