Assessment of wireless solutions in emerging broadband markets

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Sähkötekniikan korkeakoulu | Master's thesis
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Date

2016-05-09

Department

Major/Subject

Network Economics

Mcode

ETA3003

Degree programme

TLT - Master’s Programme in Communications Ecosystem (TS2005)

Language

en

Pages

53+9

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Abstract

Although broadband markets have grown steadily since the advent of the mobile Internet, penetration levels for developing countries are far from reaching the ordinary citizen. This thesis analyses three hypotheses as bottlenecks to the growth of emerging mobile broadband markets: (i) the low competence of users, (ii) the low quality of service, (iii) the high access price and, based on the results, alternative wireless solutions are studied to accelerate the Internet diffusion. Bottleneck hypotheses are evaluated through a quantitative bottleneck analysis that includes measured mobile QoS levels and macroeconomic indicators from a total of 9 cities including emerging (6) and advanced markets (3). Provided that low quality of service and data prices are identified as the main bottlenecks, a qualitative value network analysis evaluates wireless access technologies, caching technologies, collaborative business environments and, operator revenue models seeking a cost-effective solution. As a result, the thesis concludes that the affordability of broadband Internet is limited, in the first place, by the least cost-effective network technology (network costs need to be minimized), secondly by the level of competition in the market (profits of operators need to be minimized), and finally by business models of operators which could include subsidies from advertisers, content providers, governments, or implement a freemium model (access prices are minimized).

Description

Supervisor

Hämmäinen, Heikki

Thesis advisor

Hämmäinen, Heikki

Keywords

broadband market, scalable networks, affordable internet, wireless access, alternative networks

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https://urn.fi/URN:NBN:fi:aalto-201605122016

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[dipl] Sähkötekniikan korkeakoulu / ELEC