The BU-LRIC model and S/W system developed in Korea
•
0 likes•753 views
This document provides an overview of an ITU regional seminar on costs and tariffs for Study Group 3 Regional Group for Asia and Oceania (SG3RG-AO). The agenda includes an introduction to LRIC modeling, an overview of LRIC model development in Korea, details on BU-LRIC models for mobile and fixed networks, experiences sharing of BU-LRIC, and a discussion session. LRIC models have been used in Korea since 2002 to determine interconnection tariffs, with continuous refinements made to the models over time including considering additional network technologies.
![Introduction
Principles of BU‐LRIC
Competitive market
Long‐run costs: include all the costs that will ever be
incurred in supporting the relevant service demand
Incremental costs: incurred in the support of the
increment of demand; avoidable costs in case not
supporting the increment
Efficiently incurred costs
Costs of supply using modern technology: choice of
network technology (e.g. 2G, 3G); capacity of equipment;
purchasing price and operating cost; maintenance cost
[Source: Analysys Mason]
ITU-T SG3RG-AO 3](https://image.slidesharecdn.com/2012-05-28sg3rg-aoworkshopchoi-121129031259-phpapp02/85/The-BU-LRIC-model-and-S-W-system-developed-in-Korea-3-320.jpg)
![Introduction
Conceptual issues for BU‐LRIC
• Type: actual, average, hypothetical
• Footprint: national, sub‐national
• Scale: market share
• Service set supported
• traffic volume
• wholesale cost, retail cost
• network architecture issues
• adjustment of nodes: scorched‐
node or scorched‐earth
• cost increments
• depreciation method
• weighted average cost of capital
[Source: Analysys Mason]
ITU-T SG3RG-AO 4](https://image.slidesharecdn.com/2012-05-28sg3rg-aoworkshopchoi-121129031259-phpapp02/85/The-BU-LRIC-model-and-S-W-system-developed-in-Korea-4-320.jpg)
The BU-LRIC model and S/W system developed in Korea
- 1. ձDzԲԲDzDzٲԻղڴڲڴǰ3‐A 2012. 5. 28 Yongsun Choi (yschoi@inje.edu) Sangwoo Lee (woody@etri.re.kr)
- 2. Agenda Introduction Overview of LRIC model development in Korea BU‐LRIC model for Mobile Network BU‐LRIC model for Fixed Network Sharing of BU‐LRIC experiences Discussion ITU-T SG3RG-AO 2
- 3. Introduction Principles of BU‐LRIC Competitive market Long‐run costs: include all the costs that will ever be incurred in supporting the relevant service demand Incremental costs: incurred in the support of the increment of demand; avoidable costs in case not supporting the increment Efficiently incurred costs Costs of supply using modern technology: choice of network technology (e.g. 2G, 3G); capacity of equipment; purchasing price and operating cost; maintenance cost [Source: Analysys Mason] ITU-T SG3RG-AO 3
- 4. Introduction Conceptual issues for BU‐LRIC • Type: actual, average, hypothetical • Footprint: national, sub‐national • Scale: market share • Service set supported • traffic volume • wholesale cost, retail cost • network architecture issues • adjustment of nodes: scorched‐ node or scorched‐earth • cost increments • depreciation method • weighted average cost of capital [Source: Analysys Mason] ITU-T SG3RG-AO 4
- 5. Agenda Introduction Overview of LRIC model development in Korea BU‐LRIC model for Mobile Network BU‐LRIC model for Fixed Network Sharing of BU‐LRIC experiences Discussion ITU-T SG3RG-AO 5
- 6. ǰ: Interconnection regulation in Korea 1998~1999 (Revenue Sharing) Zero‐Payment Settlement between Mobile Operators 2000~2001 (Representative Cost System) Introduction and Application of Cost‐based Pricing 2002~2003 (Individual Rate System) Fully Distributed Costs (FDC) 2004~present (Individual Rate System) Introduction and Application of LRIC Elaboration of both BU‐ and TD‐LRIC models Stepwise extension of models and applications ITU-T SG3RG-AO 6
- 7. ǰ: Changes of termination rates in Korea 100.0 92.0 90.0 86.0 80.0 73.6 70.0 68.9 65.7 63.6 60.0 59.0 58.5 55.0 LGT 53.5 52.9 KRW 50.0 48.0 KTF 47.7 46.7 47.0 /min 45.7 45.1 SKT 40.0 41.0 40.1 39.6 KT 39.1 38.7 38.5 38.0 33.1 32.8 33.4 32.9 33.6 33.4 31.8 31.2 31.4 31.9 31.8 30.5 30.0 20.0 18.7 19.5 19.5 19.3 19.2 18.2 18.5 18.6 16.7 16.6 16.6 16.7 15.5 10.0 0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Note: Single MTR is to be applied from the year 2013 ITU-T SG3RG-AO 7
- 8. ǰ: BU‐LRIC system in Korea Input Data Components of BU process Output • Location and Traffic data of BTS’s • Interconnection tariff for • Location of switching stations fixed and mobile operators • Topography, roads, building data Depreciation • Interconnection tariff for Fixed network elements Design of Operating cost Mobile hypothetical Network Access Cost of • Specifications of equipments Charges for Capital • Unit prices of equipments Network CAPEX for Elements Network Elements • KT: D. nodes, LE, TE; LL, LE-LE, Investment • Asset lifetime quantity LE-TE, TE-TE • Operating cost Conversion factor Investment • SKT/KTF/LGT: BTS, BTS Sites, • Cost of capital Cost BSC, MSC, CGS, HLR, BS-MSC, MSC-MSCLL: Local loop LE: local exchange TE: toll exchange ITU-T SG3RG-AO 8
- 9. ǰ: Extension of BU‐LRIC applications 2004‐2005 Sample districts: Mobile 2, Fixed 12 Partial redesign of backbone network Reflect operator’s network topology 2006‐2007 Sample districts : Mobile 8, Fixed 12 Full redesign of backbone network Allow operator’s existing point of interconnection Forward‐looking technology 2008‐2009 Samples districts : Mobile 16 (including Seoul metro), Fixed 20 Elaboration of algorithms for optimizing mobile and fixed networks Re‐design of 3G network 2009‐present Migration into new BU‐LRIC S/W system Ready to simulate all districts (Mobile 164; Fixed 259) Started to consider 4G network ITU-T SG3RG-AO 9
- 10. ǰ: BU‐LRIC options applied in Korea Actual operator; Hypothetical existing operator National coverage for all operators Current market share; average of market share Mixed approach of scorched‐node and scorched‐earth scorched‐nodes: only MSC & Switching Stations 2G, 3G, and 4G; SKT KTF LGU+ 800MHz 20MHz(2G)/10MHz(4G) 10MHz(4G) 20MHz(4G) 900MHz - 20MHz(4G) - 1.8GHz 20MHz(4G) 20MHz(2G) 20MHz(2G) 2.1GHz 60MHz(3G) 40MHz(3G) 20MHz(4G) Voice and SMS services Actual voice traffic volume data of each BTS is used Wholesale cost ITU-T SG3RG-AO 10
- 11. ǰ: Features of BU‐LRIC model in Korea Practical and detailed approach Actual traffic volumes of each BTS are collected from operators Utilization of detailed geodata: topography, roads, buildings, etc. Phased approach Preprocessing of Input data (Traffic volume & Geodata) Network design and CAPEX calculation Visual display network elements on electronic map: helps validating the efficiency of designed network Calculation of BU‐LRIC Flexible S/W systems Various parameters are easily handled with data tables Easy customization due to stepwise modularized S/W systems ITU-T SG3RG-AO 11
- 12. Agenda Introduction Overview of LRIC model development in Korea BU‐LRIC model for Mobile Network BU‐LRIC model for Fixed Network Sharing of BU‐LRIC experiences Discussion ITU-T SG3RG-AO 12
- 13. Mobile BU‐LRIC Steps for mobile network Radio Propagation Backbone Other Elements Coverage analysis Optimized backbone / Distribution of traffic network topology Calculation of Grid segmentation for Demanding Line and candidate BTS sites Traffic Volume Quantity of Final BTS sites w/ Required floorage of Switch/(transmission propagation analysis Central Office equipment/Cables Investment Cost for Investment Cost for Investment Cost for Base Station Backbone network Central Office Depreciation, Cost of Capital, Operating cost Interconnection tariff ITU-T SG3RG-AO 13
- 14. Mobile BU‐LRIC Input geodata DEM (Digital Elevation Model) : Global DEM is available : Scale used: 10 10 meters (pixel) Buildings (height & floorage by pixel): Not used, if n/a ITU-T SG3RG-AO 14
- 15. Mobile BU‐LRIC Rooftop elevation (by pixel) Building Height DEM ITU-T SG3RG-AO 15
- 16. Mobile BU‐LRIC Terminology used District Target area of simulation; same with administrative districts Cell Area served by each (existing) BTS by coverage analysis Grid Square area as a candidate BTS site (highest pixel in the grid) Grid size varies depending on the traffic volume around Pixel Square area: scale of 10 10 meters used Most of analysis unit: coverage analysis, traffic volume distribution, capacity‐based radio propagation analysis, etc ITU-T SG3RG-AO 16
- 17. Mobile BU‐LRIC Coverage analysis & distribution of traffic (by pixel) district Cell polygons ITU-T SG3RG-AO 63 Existing BTS sites 17
- 18. Mobile BU‐LRIC Grid segmentation and candidates of BTS sites grids ITU-T SG3RG-AO 127 Candidate BTS sites 18
- 19. Mobile BU‐LRIC Finally picked efficient BTS sites with capacity‐based propagation analysis ITU-T SG3RG-AO 48 Efficiently designed BTS sites 19
- 20. Mobile BU‐LRIC Data tables of parameters All parameters for the network design and cost computation (e.g. unit cost) are managed as data tables Easy‐to‐use update of those parameters is supported “Save” ITU-T SG3RG-AO 20
- 21. Mobile BU‐LRIC Simple execution of simulation runs Folder to store Districts Operator Year Network Types Current Simulation Output files Progress bar Simulation Plans ITU-T SG3RG-AO 21
- 22. Mobile BU‐LRIC Spreadsheet output: volume and CAPEX of network elements Summary of simulation (for each simulation plan) District, Operator, Traffic volume, Network type, Target Year Total costs Categorized details (each subcategorized by network types) BTS: FA, Threshold; # of BTS, unit cost (by # of sectors); sum of BTS costs BTS site (default option: rent): # of site; Deposit, Rental fee (monthly) BSC: Unit cost (min, max); # of BSC, # of BTS, CH; sum of BSC costs BTS‐BSC network (default option: rent): type of cable; distance; sum of BTS‐BSC network costs Ancillary equipment: Air‐conditioning, fire extinguisher, QDF Powersource equipment: Rectifier, Storage battery, Cabinet panel Radio mast (6M or 40M): # of masts; unit cost; sum of mast costs ITU-T SG3RG-AO 22
- 23. Mobile BU‐LRIC Display of network elements on e‐map Basemap: vector, satellite, vector & satellite, none Display options ITU-T SG3RG-AO 23
- 25. Agenda Introduction Overview of LRIC models in Korea BU‐LRIC model for Mobile Network BU‐LRIC model for Fixed Network Sharing of BU‐LRIC experiences Discussion ITU-T SG3RG-AO 25
- 26. Fixed BU‐LRIC Steps for fixed network Local loop Backbone Other Elements Subscriber clustering Optimized backbone network topology Optimized locations of Calculation of LL nodes Demanding Line and Traffic Volume Optimized routing of Quantity of Required floorage of LL along roads Switch/(transmission Central Office equipment/Cables Volume and Cost for Investment Cost for Investment Cost for LL elements Backbone network Central Office Depreciation, Cost of Capital, Operating cost Interconnection tariff ITU-T SG3RG-AO 26
- 27. Fixed BU‐LRIC Cost elements of fixed networks RSS Network Feeder Network Distribution Network RSS 10km Distribution nodes 12km 12km Stn. A F. Node a 10km 10km 10km 20km 20km 100회선 i) ii) iii) 15km F. Node b 20km 50km 200회선 Switching Network id From / To Type Total distance Non‐overlapped Overlapped 1 Stn. A / Stn. B S. Net 10+50+10 = 70 50+10 = 60 i) 10km 1, 2, 4 2 Stn. A / RSS RSS Net 10+10+12+10 = 42 12+10 = 22 ii) 10km 2, 4 Stn. B 3 RSS / Node a F. Net 12+20+20 = 52 12+20 = 32 iii) 20km 3, 4 4 Stn. A / Node b F. Net 10+10+10+20+15+20 = 85 10+15+20 = 45 10km ITU-T SG3RG-AO 27
- 28. Fixed BU‐LRIC Spreadsheet output: Volume and CAPEX of network elements Summary of simulation (for each simulation plan) District, Operator, Target Year, Total costs Categorized details (e.g., local loop case) RSS network: # of RSS, length of duct, # of manholes, length of Fiber cable, # of equipments (Switching / Transmission); Costs Feeder Network: # of Feeder nodes, length of Duct, # of Manhole, length of cable (each Cooper or Fiber); # of equipment (Switching / Transmission); Costs Distribution Network: # of distribution nodes, length of Duct, # of Manhole, length of cable, # of poles; Costs Additionally, details of overlapped sections are provided ITU-T SG3RG-AO 28
- 29. Fixed BU‐LRIC Display of network elements on e‐map Fiber nodes & network Selection of network elements to display Copper nodes & network ITU-T SG3RG-AO 29
- 31. Agenda Introduction Overview of LRIC models in Korea BU‐LRIC model for Mobile Network BU‐LRIC model for Fixed Network Sharing of BU‐LRIC experiences Discussion ITU-T SG3RG-AO 31
- 32. Sharing of experiences Proposal to share experiences Sharing of experiences in ITU‐T SG3RG‐AO will help better understanding and improvement of BU‐LRIC models Survey of various options applied (or planned) in each member state could be proposed ITU-T SG3RG-AO 32
- 33. Sharing of experiences Availability of GIS data There are some sources of GIS data, in case n/a An example view of GIS data obtained from Google (Vietnam case) ITU-T SG3RG-AO 33
- 35. Sharing of experiences Willing to provide our experiences We are willing to provide our experiences and developed S/W systems non‐commercially Customization will be required due to diversity of options and differences of requirements granularity Modularized systems will not ask much effort for customization Member states can develop their own modules of BU‐LRIC systems ITU-T SG3RG-AO 35