Techno-Economic Analysis of Cloud-Enabled Small Cell Networks for Video Service Delivery: A Case Study in Addis Ababa
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Date
2025-02
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Addis Ababa University
Abstract
The demand for immersive video services, such as 360-degree live streaming, augmented
reality, and virtual reality has rapidly increased, especially at crowded events,
while traditional macrocellular networks often struggle when there is excessive traffic.
Insufficient capacity and latency have a major impact on the capacity of a radio access
network (RAN). To meet this growing demand, a robust and scalable network infrastructure
is required. Cloud-enabled small cell networks hold significant promise for improving
mobile network capacity and coverage challenges, at the same time improving cost, energy
usage, deployment flexibility, and network management. Combining cloud infrastructure
and small-cell networks, along with virtualized execution of computing resources, provides
a solution. However, a full evaluation of the networks’ economic viability is required prior
to their implementation, as this includes a precise computation of the resources required
and a thorough assessment of the expected outcomes.
This article provides a paradigm for evaluating the economic feasibility of cloudenabled
small-cell networks to deliver immersive video services during packed events. We
select Meskel Square in Addis Ababa as a forecasting research location, which serves
as an urban setting with concentrated hotspots. For selected scenario of implementing
RAN, forecasting the required compute, storage, and radio resources and associated costs
with implementing new software and hardware architecture. IST-TONIC and CELTICECOSYS
in MATLAB and Microsoft Excel are utilized as part of a framework that
comprises marketing forecasts, network dimensioning, revenue modeling, and economic
analysis. We use a 10% discount rate and a 10-year study period for a breakdown of
investments value analysis. The net present value (NPV), internal rate of return (IRR),
payback period (PP), operational expenditures (OpeEx), capital expenditures (CapEx)
and total costs of ownership (TCO) are evaluated.
According to the results obtained, the deployment scenario with the highest return
economic advantages that affect the rate of return is Open radio access network. Virtualized
radio access networks come in second, centralized radio access network in third,
and distributed RAN in fourth. Compared to distributed radio access networks, other
architecture exhibits a better cost position. The payback periods for distributed RAN,
centralized RAN, virtualized RAN, and open RAN in this scenario are 2.34, 2.048, 2.039,
and 2.034 years respectively for the deployment scenario. Every architecture has a positive
net present value (NPV) during the study periods and a significantly higher IRR
value than the specified discounted rate. According to the findings, all scenarios are deployable
and open RAN has significantly highest economic return with reduced total cost
of ownership.
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Keywords
Cloud-enabled Small Cell networks, Radio access network (RAN), Technoeconomic analysis, Immersive video services, Economic Feasibility.