Cost estimations are fundamental to every investment assessment. In that context, the level of complexity can range from a pure cost analysis of a single asset to an in-depth business case calculation.
In particular cost comparisons require to specify scenarios and appropriate boundary conditions in a very detailed way and the identification of cost drivers can only be based on the exact knowledge of all complex interdependencies of the overall business strategy.
This paper offers a comprehensive theoretical framework for cost calculations of mobile network operators. Starting with the description of the general modeling framework, it briefly explains the basic principles of radio network modeling and presents the basic steps for a successful application of such models.
The paper closes with exemplary results that demonstrate the power of the approach and the capabilities and importance of cost and business case analyses.