The Economic and Sustainability Future of Cellular Networks

TL;DR

This paper evaluates the technological, economic, and environmental impacts of migrating from 3G to 4G LTE networks, highlighting profitability and significant carbon emission reductions.

Contribution

It provides a comprehensive techno-economic and environmental analysis of LTE deployment compared to 3G, including profitability and carbon footprint considerations.

Findings

LTE is profitable for network operators.

Migration to LTE can reduce carbon emissions by 63%.

Operators face a trade-off between profit and tariff demands.

Abstract

Global data traffic is expected to grow exponentially in the next few years with video and smartphone applications driving data growth. Many mobile network providers in the UK have either deployed or planning to deploy 4th generation Long-Term-Evolution (LTE) mobile technology as the solution to meet capacity demands. This study evaluates the technological improvements in 4G LTE in comparison to 3G High Speed Packet Access (HSPA) and further conducts a techno-economic analysis using primary researched tariff data to determine network operator profitability and mobile tariff strategy to meet user demand. To ensure holistic analysis, the study also considers the environmental impacts of LTE by determining the annual carbon emission for a network operator. The study results shows LTE will prove profitable; however a trade-off has to be made by network operators between meeting consumer tariff demands or increasing profitability. Analysis also shows a 63% reduced in carbon emissions is possible with migration to 4G services with implication of further financial benefits for network operators as a result.