Real Options Methodology Applied to the ICT Sector: A Survey

This survey focuses on the application of real options methodology to the information and communications technology (ICT) industries. It examines the development of the methodology to areas as diverse as wireless cell site investments to dynamic pricing issues. In addition to aiding the reader in understanding the breadth of the applications, it demonstrates the importance of the topic. It provides a guide to the reader who is interested in exploring the topic in greater depth.Discounted cash flow, economic methodology, information and communications technology (ICT), investment, investment under uncertainty, options, present discounted value, real options, valuations.

A common European Spectrum policy

This briefing note considers the European Commission\u2019s proposals for a common European spectrum policy through reviewing adopted legislation as well as recent communications and other initiatives. The report was produced against the background of the review of the regulatory framework for electronic communications and the recent World Radiocommunication Conference

VoLTE: Fundamentals and Investment under Uncertainty by analogy with the Real Options Theory – A real case application in Greek Telecommunications market

Με την εμφάνιση των Τηλεπικοινωνιών, η φωνή έσπασε όλα τα φυσικά όρια και έγινε πραγματικότητα η μετάδοσή της παγκοσμίως σε πραγματικό χρόνο. Σύντομα, οι υπηρεσίες φωνής μετατράπηκαν σε βασική δραστηριότητα για τους παρόχους και το έναυσμα για την ανάπτυξη των Σταθερών και Κινητών Τηλεπικοινωνιών. Η τελευταία λέξη της τεχνολογίας για την Κινητή μετάδοση φωνής είναι το Voice over LTE (VoLTE), το οποίο αποτελεί μια σημαντική δυνατότητα του δικτύου για τη ουσιαστική βελτίωση της απόδοσης της φωνής και της χωρητικότητας του ραδιοδικτύου με ταυτόχρονη μείωση στα λειτουργικά κόστη. Στην παρούσα διπλωματική εργασία παρουσιάζονται οι βασικές αρχές της αρχιτεκτονικής VoLTE και παρέχεται μία ανάλυση της τεχνολογίας VoLTE ως επενδυτική ευκαιρία. Στο πρώτο μέρος παρατίθεται μια ιστορική αναδρομή σχετικά με την εξέλιξη των συστημάτων φωνής των Κινητής Τηλεπικοινωνιών από την πρώτη γενιά έως σήμερα. Περιλαμβάνεται μια επισκόπηση της αρχιτεκτονικής VoLTE με ανάλυση των κύριων υποσυστημάτων και των βασικών τους στοιχείων με βάση τις τεχνικές προδιαγραφές. Επιπλέον, παρουσιάζονται οι βασικές λειτουργίες μετάδοσης φωνής μέσω της τεχνολογίας VoLTE. Στο επόμενο μέρος περιγράφονται τα οφέλη και οι προκλήσεις που γεννιούνται από την ανάπτυξη της λύσης VoLTE, από τεχνικής άποψης αλλά και από πλευράς αγοράς. Για τον μετριασμό των κινδύνων, προτείνεται από τις χρηματοπιστωτικές αγορές η θεωρία των για την αξιολόγηση της επένδυσης, με βάση τη σύγχρονη βιβλιογραφία. Η ζήτηση της υπηρεσίας VoLTE μοντελοποιείται χρησιμοποιώντας τη γεωμετρική κίνηση Brown και αναπτύσσεται μια μεθοδολογία βασισμένη στα πραγματικά δικαιώματα προαίρεσης μέσω του δυναμικού προγραμματισμού, για τον υπολογισμό των βέλτιστων επενδυτικών κανόνων και του κόστους ευκαιρίας. Στο έκτο κεφάλαιο, παρουσιάζεται ένα παράδειγμα πραγματικής περίπτωσης επένδυσης VoLTE στην ελληνική αγορά Κινητών Τηλεπικοινωνιών, χρησιμοποιώντας την προτεινόμενη μεθοδολογία των πραγματικών δικαιωμάτων προαίρεσης. Τα αποτελέσματα συγκρίνονται με την παραδοσιακή προσέγγιση και αναλύονται με την χρήση προσομοιώσεων Monte Carlo. Συμπεράσματα και ενδιαφέροντα ευρήματα παρέχονται στο τελευταίο κεφάλαιο.With the emergence of Telecommunications, the voice broke all physical borders and could be transferred worldwide in real-time. Soon, voice services became a core business for the providers and the trigger for the development of Fixed and Mobile Telecommunications. The state of the art for mobile voice delivery is Voice over LTE (VoLTE), which is an important network capability to significantly improve the service performance and radio capacity while reducing operating costs. This study thesis presents the fundamental principles of VoLTE architecture and provides an analysis of the VoLTE solution as an investment opportunity. In the first part, a historical review is given regarding the evolution of the Cellular Mobile Telecommunication systems since their first generation. An overview of the VoLTE architecture is included with an analysis of the main subsystems and the core components based on the technical specifications. Moreover, the basic functionalities of the VoLTE technology are presented. The next part describes the benefits and challenges of deploying the VoLTE solution from technical and market perspectives. In order to mitigate the risks, the Real Options theory from the financial market is introduced for evaluating the VoLTE investment according to modern literature. The VoLTE demand is modelled using the Geometric Brownian Motion process and the dynamic programming is used to structure a Real Options-based framework for calculating optimal investment rules and opportunity cost. In the sixth chapter, a real case application of the proposed framework in the Greek Mobile Telecommunications market is presented. The results are compared with the traditional tools and analyzed by performing Monte Carlo simulations. Conclusions and interesting insights are provided in the last chapter

Managed access dependability for critical services in wireless inter domain environment

The Information and Communications Technology (ICT) industry has through the last decades changed and still continues to affect the way people interact with each other and how they access and share information, services and applications in a global market characterized by constant change and evolution. For a networked and highly dynamic society, with consumers and market actors providing infrastructure, networks, services and applications, the mutual dependencies of failure free operations are getting more and more complex. Service Level Agreements (SLAs) between the various actors and users may be used to describe the offerings along with price schemes and promises regarding the delivered quality. However, there is no guarantee for failure free operations whatever efforts and means deployed. A system fails for a number of reasons, but automatic fault handling mechanisms and operational procedures may be used to decrease the probability for service interruptions. The global number of mobile broadband Internet subscriptions surpassed the number of broadband subscriptions over fixed technologies in 2010. The User Equipment (UE) has become a powerful device supporting a number of wireless access technologies and the always best connected opportunities have become a reality. Some services, e.g. health care, smart power grid control, surveillance/monitoring etc. called critical services in this thesis, put high requirements on service dependability. A definition of dependability is the ability to deliver services that can justifiably be trusted. For critical services, the access networks become crucial factors for achieving high dependability. A major challenge in a multi operator, multi technology wireless environment is the mobility of the user that necessitates handovers according to the physical movement. In this thesis it is proposed an approach for how to optimize the dependability for critical services in multi operator, multi technology wireless environment. This approach allows predicting the service availability and continuity at real-time. Predictions of the optimal service availability and continuity are considered crucial for critical services. To increase the dependability for critical services dual homing is proposed where the use of combinations of access points, possibly owned by different operators and using different technologies, are optimized for the specific location and movement of the user. A central part of the thesis is how to ensure the disjointedness of physical and logical resources so important for utilizing the dependability increase potential with dual homing. To address the interdependency issues between physical and logical resources, a study of Operations, Administrations, and Maintenance (OA&M) processes related to the access network of a commercial Global System for Mobile Communications (GSM)/Universal Mobile Telecommunications System (UMTS) operator was performed. The insight obtained by the study provided valuable information of the inter woven dependencies between different actors in the delivery chain of services. Based on the insight gained from the study of OA&M processes a technological neutral information model of physical and logical resources in the access networks is proposed. The model is used for service availability and continuity prediction and to unveil interdependencies between resources for the infrastructure. The model is proposed as an extension of the Media Independent Handover (MIH) framework. A field trial in a commercial network was conducted to verify the feasibility in retrieving the model related information from the operators' Operational Support Systems (OSSs) and to emulate the extension and usage of the MIH framework. In the thesis it is proposed how measurement reports from UE and signaling in networks are used to define virtual cells as part of the proposed extension of the MIH framework. Virtual cells are limited geographical areas where the radio conditions are homogeneous. Virtual cells have radio coverage from a number of access points. A Markovian model is proposed for prediction of the service continuity of a dual homed critical service, where both the infrastructure and radio links are considered. A dependability gain is obtained by choosing a global optimal sequence of access points. Great emphasizes have been on developing computational e cient techniques and near-optimal solutions considered important for being able to predict service continuity at real-time for critical services. The proposed techniques to obtain the global optimal sequence of access points may be used by handover and multi homing mechanisms/protocols for timely handover decisions and access point selections. With the proposed extension of the MIH framework a global optimal sequence of access points providing the highest reliability may be predicted at real-time

Proceedings of the Fifth International Mobile Satellite Conference 1997

Satellite-based mobile communications systems provide voice and data communications to users over a vast geographic area. The users may communicate via mobile or hand-held terminals, which may also provide access to terrestrial communications services. While previous International Mobile Satellite Conferences have concentrated on technical advances and the increasing worldwide commercial activities, this conference focuses on the next generation of mobile satellite services. The approximately 80 papers included here cover sessions in the following areas: networking and protocols; code division multiple access technologies; demand, economics and technology issues; current and planned systems; propagation; terminal technology; modulation and coding advances; spacecraft technology; advanced systems; and applications and experiments

The Case for Liberal Spectrum Licenses: A Technical and Economic Perspective

The traditional system of radio spectrum allocation has inefficiently restricted wireless services. Alternatively, liberal licenses ceding de facto spectrum ownership rights yield incentives for operators to maximize airwave value. These authorizations have been widely used for mobile services in the U.S. and internationally, leading to the development of highly productive services and waves of innovation in technology, applications and business models. Serious challenges to the efficacy of such a spectrum regime have arisen, however. Seeing the widespread adoption of such devices as cordless phones and wi-fi radios using bands set aside for unlicensed use, some scholars and policy makers posit that spectrum sharing technologies have become cheap and easy to deploy, mitigating airwave scarcity and, therefore, the utility of exclusive rights. This paper evaluates such claims technically and economically. We demonstrate that spectrum scarcity is alive and well. Costly conflicts over airwave use not only continue, but have intensified with scientific advances that dramatically improve the functionality of wireless devices and so increase demand for spectrum access. Exclusive ownership rights help direct spectrum inputs to where they deliver the highest social gains, making exclusive property rules relatively more socially valuable. Liberal licenses efficiently accommodate rival business models (including those commonly associated with unlicensed spectrum allocations) while mitigating the constraints levied on spectrum use by regulators imposing restrictions in traditional licenses or via use rules and technology standards in unlicensed spectrum allocations.

Essays on optimal spectrum management for expanding wireless communications

Wireless communications are experiencing an unprecedented expansion. The increasing mobility of the communication society and the pace of technological change are growing pressure for more spectrum to support more users, more uses and more capacity. Thus, spectrum management has become an extremely important part of wireless communications. A few regulators are changing their traditional ‘command and control’ approach. Nevertheless, many features of optimal spectrum management are still widely discussed. This work is aimed at contributing to that discussion. The key insight is that spectrum management can benefit from more liberal spectrum sharing. This work set out to answer three main research questions: (i) whether there is a theoretical framework which can be used to analyze and guide spectrum policy reform, when moving from a traditional ‘command and control’ regime to a market-inspired one; (ii) whether it is possible to design a plausible mechanism which can promote efficient allocation and assignment of spectrum commons; (iii) whether (and how) technological developments could enable band sharing methods outside the traditional management framework and without harmful interference. The literature on transition economics and policy was used to help answer the first research question. Evidence from liberalizing countries was positively analyzed to discuss reforms of spectrum allocation and assignment methods. Most countries have adopted strategies that gradually change their spectrum policies and started by using more liberal methods to assign spectrum. It is also argued that future spectrum reforms might benefit from insights presented in the transition economics literature. A translation of a model on cartel quotas under majority rule is proposed to answer the second research question. The work verifies, firstly, that an analogous set of properties is satisfied under our assumptions and that the median-index theorem applies, mutatis mutandis, to our setting. Thus firms bidding to acquire spectrum commons contribute a minimum amount of their wealth; the sum of contributions offered is then compared to other bids for the same spectrum, which is allocated to the highest bidder. The last research question considers novel ways of spectrum sharing that might be enabled by technological developments. The work explores contributions, from various research areas, regarding management of scarce resources. Those contributions are discussed with respect to shared spectrum access. It is suggested that spectrum management might benefit from methods which enable the management of pooled (intermittent) demands for access, especially methods in line with fair sojourn protocols

Mobile network design : Orange UK 2G to 3G mobile backhaul evolution

The research presented in this thesis is focused on the evolution of a GSM/GPRS (2G) cellular mobile network to UMTS (3G) and then subsequently, HSDPA. The particular technical area of research relates to the mobile backhaul network which provides the connectivity between radio cell sites which support the wide area radio coverage, and the mobile network operator’s core network. Due to the evolution of UMTS with HSDPA, the research covers the initial UMTS network rollout and then addresses the evolution of this infrastructure to support mobile broadband communications, through the introduction of HSDPA as a network upgrade. The two research questions being addressed are therefore: •How is it possible to evolve a GSM/GPRS mobile backhaul network to support a converged GSM/GPRS and UMTS cellular mobile service? •How is it possible to ensure scalability of the converged backhaul network given the introduction of HSDPA and associated mobile broadband data growth? The starting point of the research is an established GSM and GPRS commercial network in the UK and the study is based on the design of the Orange network and focused on the period 2000 to 2010. During this period the author was working as Principal Network Designer within Orange and had overall responsibility for the strategy, architecture and design of the UK mobile backhaul network. The thesis provides a detailed explanation of the novel network design that was adopted and how it was evolved throughout the ten year period covered by the research. The research proves that the original static TDM approach was not suitable for UMTS and therefore the outcome was the introduction of an ATM network with optimisation based on traffic class rt-VBR over protected STM-1 transmission links. HSDPA drove further traffic growth and resulted in an evolution of the solution to ensure massive scalability was supported through the migration to Carrier Ethernet and implementation of pseudo-wires. In addition, to providing a technical description of the network design, the thesis also aims to provide a historical record of the technologies and equipment used during this period of rapid change within the UKs mobile networks