Network Design
A nationwide wireless carrier wants to deploy a network infrastructure to support broadband data service. The service area is a city of 100 square miles (such as Atlanta).
They want to figure out the Total Cost of Ownership (TCO) for three different network configurations:
- Config 1: 100% 4G (all area covered by only 4G Base Stations)
- Config 2: For 50-50 4G and WLANs (50% of the area covered by BS and 50 % by APs)
- Config 3: 100% WLANs (all area covered by only APs)
What is known:
- Based on the available spectrum and coverage of 1 square mile: It will need 10 Base station (BS) of 1000 Mbps OR 800 Access Point (AP) of 12.5 Mbps
- Cost per Base Station
o Initial fix Capital Expenses (CAPEX) $50,000 for hardware, $150,000 site, $5,000 for network connection
o Monthly variable Operational Expenses (OPEX) $1000 site rental, $200 maintenance
- Cost per Access Point
o Initial fix Capital Expenses (CAPEX) $500 for hardware, $600 site, $300 for network connection
o Monthly variable Operational Expenses (OPEX) $20 site rental, $10 maintenance
More details:
1. You will have to compute how many base stations and how many access points are needed in each configuration for the whole network of 100 square miles.
2. The Total Cost of Ownership (TCO) for N years is based on both fixed and variable cost incurred over N years. This assumes that the fixed costs are spread over N years and then you need to compute variable cost for N years. The sum of these two will be the TCO for N years.
Whatever is not known:
If you need any other information for design, assume a reasonable value. Also highlight the value you have assumed.
Extra credit:
1-page strategy for managing future demands of data traffic for this wireless carrier as part of business model. This could include things like possibility of unlimited data plans, per GB pricing, innovative ways of charging, throttling of power users (slowing down their speed to discourage more uploads and downloads).