Techno-Economic Analysis of 5G Hybrid Deployment of Sub 6GHz and mmWave Band: The Case of Bole area, Addis Ababa, Ethiopia
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Date
2025-05
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Addis Ababa University
Abstract
As wireless communication demand increases, fourth-generation (4G) networks are
becoming insufficient. Fifth-generation (5G) networks address this challenge by offering
higher data rates, lower latency, and improved Quality of Experience (QoE). Key enabling
technologies include Massive Multiple-Input Multiple-Output (Massive MIMO), millimeterwave
(mmWave) communication, and device-to-device communication. In Ethiopia, Ethio
Telecom has launched the deployment of 5G services using the sub-6 GHz (3.5 GHz) band,
It will eventually be expanded to mmWave (28 GHz).
The aims of this thesis is to analyze the techno-economic feasibility of a hybrid 5G
deployment in the Bole area of Addis Ababa, combining sub-6 GHz (3.5 GHz) macro cells
with mmWave (28 GHz) micro cells through carrier aggregation. This analysis uses data
from Ethio Telecom, literature, and (3rd Generation Partnership Project) 3GPP specifications.
Execute network dimensioning and apply a modified version of the Techno Economic
Results from the Advanced Communications Technology and Services (TERA) tool for cost
and revenue modeling, and a five-year financial analysis using a 10% discount rate.
The analysis shows that the hybrid 5G deployment model is both technically feasible
and economically viable. Key financial indicators include a payback period of 4.48 years,
a positive Net Present Value (NPV) of ETB 193.98 million, and an Internal Rate of Return
(IRR) of 30%, which exceeds the assumed discount rate. These findings support the
strategic adoption of hybrid 5G networks to meet Ethiopia’s growing connectivity needs.
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Keywords
5G New Radio, Sub 6GHz, mmWave, QoS, TERA, Technoeconomic Analysis