Republic of Lithuania Communications Regulatory Authority Reference paper for creating bottom up long run average incremental costs model (BU-LRAIC) Version 4 30 June, 2008 Glossary The terminology used in this document is defined in legal acts of Lithuania of Republic. List of other terminology and abbreviations is placed in following table. No. Abbreviation Term Explanation 1. ¸ ] X A function that returns the highest integer less than or equal to X. 2. 1 X A function that returns the smallest integer not less than X. 3. A A interface Link between the BSS and MSC/MGW. 4. BSC Base Station Controller The BSC is the functional entity within the GSM architecture that is responsible for radio resource allocation to a mobile station, frequency administration and handover between BTS controlled by the BSC. 5. BTS Base Transceiver Station In cellular system the Base Transceiver Station terminates the radio interface. Each BTS may consist of a number of TRX, typically between 1 and 16. 6. BHCA Busy hour call attempts Number of call attempts in a busy hour. 7. BHE Busy Hour Erlangs Measurement of traffic in telecommunications network during a busy hour expressed in Erlangs. 8. BHT Busy Hour Traffic Amount of traffic in a busy hour. 9. Call Connection established by means of a publicly available telephone service allowing two-way communication in real time. 1 0. CAPEX CAPEX Capital expenditure costs. CAPEX costs comprise depreciation and ROI. 1 1. Channel Logical unit in a circuit used for transmitting electric signals. 1 2. Circuit Telecommunications line which ensures transmission of electric signals. 1 3. CSD Circuit Switched Data CSD is the original form of data transmission developed for the time division multiple accesses (TDMA)-based mobile phone systems like Global System for Mobile Communications. 1 4. CJC Common and joint costs Cost that need to be allocated to several services. 1 5. CCS Common-Channel Signalling CCS is the transmission of signalling information (control information) on a separate channel to the data. 1 6. Cost driver A factor that influences the existence and amount of costs. 1 7. CVR Cost volume relationship Relationship between total value of cost and cost driver. 1 8. Costs Decrease in economic value for a company due to usage of fixed assets, sale of assets, loss of assets, decrease in asset value or increase in liabilities over a period, which results in decrease in equity capital. 1 9. CCA Current cost accounting Accounting of costs in terms of current costs and prices of products and services. 2 0. CD Current depreciation Depreciation cost expressed in current cost accounting terms. 2 1. DDF Digital distribution frame DDF is the distribution equipment used between digital multiplexers, between digital multiplexer and exchange equipment or non voice service equipment, carrying out such functions as cables connection, cable patching and test of loops that transmitting digital signals. 2 2. EIR Equipment identity register EIR is a database employed within mobile networks. It stores information about user equipment state (stolen, non-conforming and other). 2 3. Erlang Measurement of traffic indicating number of call minutes on a network during one minute time. No. Abbreviation Term Explanation 2 4. FC Fixed costs Costs that are fixed and not influenced by change in volume of service. 2 5. Forward looking cost accounting Accounting of costs in terms of forward looking costs and prices of products and services. 2 6. GGSN Gateway GPRS Support Node GGSN supports the edge routing function of the GPRS network. 2 7. Gb Gb interface Link between the SGSN and PCU. 2 8. GSM Global System for Mobile communication GSM is a cellular network, which means that mobile phones connect to it by searching for cells in the immediate vicinity. 2 9. GBV Gross book value Acquisition cost of an asset. 3 0. GRC Gross replacement cost Cost incurred for replacing object of similar type and characteristics not taking into account accumulated depreciation. 3 1. HSCSD High Speed Circuit Switched Data HSCSD is an enhancement to Circuit Switched Data. 3 2. HSDPA High Speed Downlink Packet Access HSDPA improves system capacity and increases user data rates in the downlink direction, that is, transmission from the Radio Access Network to the mobile terminal. 3 3. HCA Historic cost accounting Accounting of costs in terms of historic (actual) costs and priced of products and services. 3 4. HG Holding gain Income that results due to increase in asset value. 3 5. HLR Home Location Register The Home Location Register is a database, which provides routing information for mobile terminated calls and SMS. 3 6. HCC Homogenous cost category A set of costs, which have the same driver, the same cost volume relationship pattern and the same rate of technology change. 3 7. Incremental cost Increase in costs due to increase in volume of service. 3 8. Indirect costs Costs that are indirectly related to a specific product and service and that need to be allocated to different using economically justifiable drivers. 3 9. Iub Iub Interface Link between the RNC and the Node B. 4 0. LRAIC Long run average incremental costing The principle of long run average incremental costing – estimating change in costs as a result of change in cost driver volume and dividing them over a unit of service. The costs are measured in the long run, which means that the company based on the level of demand can change the amount of resources involved in providing a service i.e. all costs become variable. 4 1. Max (…) Maximum It is a function, which returns the biggest number in a set of values defined in brackets. 4 2. MGW Media Gateway A gateway that supports both bearer traffic and signalling traffic 4 3. Min (…) Minimum Min (minimum) is a function, which returns the smallest number in a set of values defined in brackets. 4 4. MSC Mobile Switching Centre A Mobile Switching Centre is a telecommunication switch or exchange within a cellular network architecture which is capable of inter working with location databases. 4 5. MSS MSC Server MSC Server handles call control for circuit-based services including bearer services, tele services, supplementary services, charging and security, besides controlling resources related to circuit-based services. 4 6. MMSC Multimedia Messaging Service Centre The Multimedia Messaging Service Centre provides a store and forward facility for multimedia messages sent across a mobile network. 4 7. NBV Net book value Remaining value of an asset calculated as a difference between gross book value and accumulated depreciation plus changes in asset revaluation over time. 4 8. NRC Net replacement cost Cost incurred for replacing object of similar type and characteristics taking into account accumulated depreciation. 4 9. NC Network Component Network Components represent logical elements that are functionally integrated and in combining those elements any services may be modelled. 3 No. Abbreviation Term Explanation 5 0. NE Network element Any network object, which physically or logically can be identified as an independent network unit. 5 1. Node B The Node B is the function within the UMTS network that provides the physical radio link between the user equipment and the network 5 2. OPEX OPEX Operating expenditures that comprise salaries, material and other external service costs. 5 3. ODF Optical distribution frame ODF are used for connection and patching of optical cables, mainly used as the interface between optical transmit network and optical transmit equipment and between optical cables in access network of optical fiber subscribers. 5 4. Port A device for connecting lines with network nodes accepting and forwarding electric signals. 5 5. RNC Radio Network Controller The main element in Radio Network Subsystem that controls the use and the reliability of the radio resources. 5 6. ROI Return on investment Required return on investment calculated by multiplying WACC and capital employed. 5 7. Routing matrix Matrix which represents the intensity of NE usage for different services. 5 8. SCP Service Control Point The SCP processes the request and issues a "response" to the MSC so that it may continue call processing as appropriate. 5 9. SGSN Serving GPRS Support Node SGSN keeps track of the location of an individual Mobile Station and performs security functions and access control. 6 0. SMSC Short Message Service Centre The SMSC forwards the short message to the indicated destination subscriber number. 6 1. SFH Soft Handover Soft handover is a category of handover procedures where the radio links are added and abandoned in such manner that the mobile always keeps at least one radio link established. 6 2. SDCCH Stand-alone Dedicated Control Channel This channel is used in the GSM system to provide a reliable connection for signalling and SMS messages. 6 3. Supporting activity Supporting activity comprise administration, accounting, planning, human resource management and other supplementary activities. 6 4. Switch (switching host) Network element that switches calls between two network nodes. 6 5. Telecommunications network Telecommunication network used to provide public telephone service including transmission of voice between network end points and other services such as fax or data transmission. 6 6. Termination Transmission of a call from a switch (including switch) where interconnection can be established located closest to the subscriber receiving the call to the final network point where the call ends. 6 7. TRX Transceiver A device that is capable of both transmission and reception of a signal. 6 8. TRC Transcoder Controller Function of TRC is transmitting data between switching controllers in a data transmission network. 6 9. Transit Transmission of a call from a switch where interconnection can be established located closest to a subscriber initiating a call (excluding the switch ) to a switch where interconnection can be established located closest to a subscriber receiving a call (excluding the switch) via one or more switches. 7 0. Transmission link A link which ensures transmission of optical and electric signal between two remote geographic units. 7 1. Transmission network Telecommunication equipment which ensures transmission of optical and electric signals among separate core network components. 7 2. Tributary card Component of a multiplexer constituting interface between multiplexer and other telecommunication equipment. 7 3. UMTS Universal Mobile Telecommunications System It is a 3G mobile communications system which provides an enhanced range of multimedia services. 7 4. Unsuccessful call Unsuccessful calls comprise calls when the line is busy and calls when the recipient does not answer the call. 7 5. VC Variable costs Costs that are directly related to change in volume of services. 4 No. Abbreviation Term Explanation 7 6. VLR Visitor Location Register The Visitor Location Register contains all subscriber data required for call handling and mobility management for mobile subscribers currently located in the area controlled by the VLR. 7 7. VMS Voice Mail Service Network element, which executes recording of voice messages for users, who are unable to answer a call. 7 8. WAP Gateway WAP Gateway accesses web content for a mobile. 7 9. WACC Weighted average cost of capital Cost of capital calculated as a weighted cost of borrowed and equity capital. 8 0. Wholesale billing system Information system which involves estimating and invoicing for wholesale services. 8 1. WAP Wireless Application Protocol A standard designed to allow the content of the Internet to be viewed on the screen of a mobile device such as mobile phones, personal organisers and pagers. 5 Table of contents Glossary ...........................................................................................................................................2 Table of contents..............................................................................................................................6 Introduction......................................................................................................................................8 Legal background .........................................................................................................................8 Document objective......................................................................................................................9 Request for expressing opinion .....................................................................................................9 Data collection............................................................................................................................10 LRAIC methodology .......................................................................................................................11 Network modelling .....................................................................................................................12 Increments..................................................................................................................................12 Modelling period........................................................................................................................13 Cost accounting .........................................................................................................................14 Cost of capital............................................................................................................................14 Technological background .........................................................................................................15 Mark – ups..................................................................................................................................16 Outline of the modelling principles..................................................................................................18 Sub-models .................................................................................................................................18 Model scenarios..........................................................................................................................18 Flow of BU-LRAIC modelling..........................................................................................................20 Network demand .........................................................................................................................20 Network dimensioning................................................................................................................20 Network valuation......................................................................................................................21 Service cost calculation .............................................................................................................21 Scope of the model ........................................................................................................................23 List of services............................................................................................................................23 List of homogeneous cost categories .........................................................................................24 List of network components .......................................................................................................27 Demand .........................................................................................................................................29 GSM network..............................................................................................................................29 UMTS network ...........................................................................................................................31 Service demand conversion........................................................................................................32 Network Dimensioning ...................................................................................................................53 Base and extension units............................................................................................................53 1.1.Base Transceiver Station......................................................................................................59 Transceiver .................................................................................................................................69 6 1.2.Node B..................................................................................................................................72 Sites............................................................................................................................................78 1.3.Base Station Controller .........................................................................................................79 1.4.Transcoder Controller ...........................................................................................................80 1.5.Radio Network Controller......................................................................................................81 1.6.Mobile Switching Centre .......................................................................................................83 Mobile Switching Centre Server..................................................................................................94 Media Gateway ...........................................................................................................................97 SMSC and MMSC .....................................................................................................................107 1.7.Packet Control Unit and Serving GPRS Support Node .......................................................108 1.8.Voice Mail Service and Home Location Register................................................................112 1.9.Service Control Point (Intelligent Network)..........................................................................113 1.10.Network Functionality........................................................................................................115 1.11.Other Network ...................................................................................................................116 1.12.Transmission....................................................................................................................117 2.Network valuation......................................................................................................................139 Cost annualization....................................................................................................................139 2.1.Mark-ups .............................................................................................................................141 Service cost calculation................................................................................................................143 Homogeneous cost categories allocation to Network Components ...........................................143 2.2.Network Component average unit cost..............................................................................146 2.3.Service cost ........................................................................................................................149 Annex 1. Second sub-model: point of interconnection related service cost calculation................154 Annex 2. Preliminary questionnaire forms...................................................................................162 7 Introduction Legal background Elaborationof atool for calculationof cost-basedcarrier specificinterconnectionpricesof the Lithuanian mobile telecom networks developed by bottom-up method of long-run incremental costs (further – BU-LRAIC ) method is maintained by these legal regulations: European Union Electronic Communications Regulation System (directives); Law on Electronic Communications of Republic of Lithuania; Market analysisconductedbytheCommunicationsRegulatoryAuthorityof Republicof Lithuania (further – RRT); Executive orders and decisions of the Director of the RRT. Thedirectiveonacommonregulatoryframeworkfor electroniccommunicationsnetworksand services (Framework Directive) was established by the European Parliament in 2002. The aim of Framework Directive is to create a harmonised regulation of electronic communications services, electronic communications networks, associated facilities and associated services across Europe. In2005, RRTinitiatedmarket analysesof wholesalemobilevoicecall terminationinLithuania, which, as a result, concluded that: There are 3 dominant mobile operators having significant market power (SMP) in mobile voice call termination market in Lithuania; Calltermination costsin dominantmobile operators’network are not significantly lower, comparedtoretail prices(moreover, inmost of thecases, theyareevenhigher); this createsentrancebarriersforthenewentrantsandleadstoreducedcompetitioninthe market. In order to promote efficient competition, RRT issued executive orders by which Lithuania’s mobile operators, having SMP (further – Operators), are obliged to set mobile termination rates on a level that couldsolvethecompetitionissuesmentionedabove. RRThavingevaluatedmajor price control tools, concluded, that the most appropriate tool for mobile termination rate control is BU- LRAIC, whichisacommonpricecontrol tool for mobileterminationratesinEuropeanUnion countries. 8 Document objective The objectives of this reference paper (further – BU-LRAIC model reference paper or MRP) are: To present the scope and the detailed principles of the BU-LRAIC modelling (guidelines and concept of the BU-LRAIC model); To collect comments and suggestions from Operators and other market participants on the BU-LRAIC modelling principles presented. BU-LRAIC modelling is theoretical and might have difference from real market situation, however, it models mobile telephone operator operating efficiently in competitive market. While using BU-LRAIC method, there is a risk that some of the practical aspects will be excluded from the scope of the model. Seeking to avoid this kind of situation it is expected that all market players will take an active participation in model implementation: ByprovidingcommentsandsuggestionsrelatedtoBU-LRAICmodellingprinciplesand assumptions; By providing questionnaire data on a timely basis; By providing other relevant data. We seek for cooperation which is useful for all parties involved. In case there is a lack of data for BU-LRAIC modelling, benchmarks will be used. Request for expressing opinion BU-LRAICmodel will be constructed by the methodology and principles presented in this document and after confirmation of this model reference paper (MRP) no changes and adjustments to the discussed algorithms will be available. Seekingforclearnessandtransparencyof thismodel it isrequestedthat Operatorsandother marketparticipantsactivelycommentandprovidefeedback to this document iftherearesome remarks to proposed methodology. If thereisaremarkand(or)disagreement to themethodology presented, Operators and other market participants should provide feedback in the following structure: Pointing out the exact element in the methodology; Explaining the reasons for disagreement; Presenting detailed alternative approach including all data required for calculations; Explaining the advantages of the proposed approach. 9 Thefeedback tables inthis document areprovidedafter all algorithms presented, accepted assumptions and methodological principles. A detailed explanation why Operator or other market participants disagree and alternative suggestions can be provided in a space below the table. If Operator or other market participantshaveother remarks, not coveredbyfeedbacktables, Operator or other market participants should put comments and suggestions on separate document following the same feedback structure as provided above. Data collection Having identified all the data requirements for the model, the collection of data is necessary for the formation of BU-LRAIC model: 1. At first, survey forms will be prepared and presented in a public meeting with market players. 2. Further, Operators will be held responsible for gathering and providing all required model input data. Other market participants willalso be able to provide relevant questionnaire data on a voluntary basis. Table 1 shows the preliminary data collection timeline. Having in mind data collection takes time and resources, the preliminary questionnaire forms are provided in Annex 2. Table 1. Preliminary data collection timeline Task name Time Final survey forms prepared 2008 08 22 Presentation to market participants2008 08 25 Operators gather and provide all necessary data 2008 08 26 – 2008 10 13 It is strongly recommended Operators should start collecting data in advance in order to meet the deadlines. All comments and suggestions by Operators or other market participants must be delivered till 8 th of August, 2008. RRT prefers receiving responses via electronic mail attachments to e-mail:
[email protected] Responses should also be posted or faxed to the address below. Communications Regulatory Authority Algirdo g. 27, LT-03219 Vilnius, Lietuva 10 LRAIC methodology Allcalculations in modelare based on Forward – Looking Long Run Average IncrementalCost (LRAIC) methodology, assuming efficient operator operating in a fully competitive market. The meaning of the definition of LRAIC is as follows: 1. Long run. In the short-run incremental costs can split into fixed and variable incremental costs, however, in the long run all costs are variable, which is the principle of LRAIC. Consequently, all input factors (as well as capital) should be included to the forecasted demand for services. 2. Average Incremental.Theprinciple of average incremental costs involves estimating a change in costs which is caused by production increment and allocating estimated costs to one unitofservice.Incrementalcosts can be defined as costs thatcan be avoided ifincrement would not be provided.Figure 1 illustrates the concepts of incremental and average incremental costs. Figure 1: incremental and average incremental costs 3. Forward looking. Forward-looking costs are the costs incurred today building a network which has to face future demand and asset prices. In practice this means that if modelling is done in a year X, the cost of services are calculated for the year X+1 (e.g. if modelling is done in 2008, service costs are calculated for the year 2009). Inabroadermeaning, LRAIC(togetherwiththeefficiencyassumption)istheapproximationof incremental costs, which, according to the economic theory, reflects the economic costs (and the price) of anefficient operator operatinginafullycompetitivemarket. Asaresult, seekingfor efficient competition, mobileterminationratesshouldcomeuptothesameratesascalculated using the LRAIC method. Average incremental costs Increment Output Costs Incremental costs 11 Network modelling Incurrent BU-LRAICmodelnetworkmodellingisnot constrainedbycurrent networkdesignor topology. It is assumed that network is built from scratch with forward-looking technology. Number of network elements and their locations are derived from modelling efficient operator operating in a fullycompetitivemarket. Consequently, thisapproachdeterminesthelevel of optimization, that closely approximates long-run economic costs of providing interconnection costs and assures that Operators have incentives to migrate to a more efficient architecture. Followingnetworkmodellingprinciples describedabove, thedetailedcalculations of required network elements are provided in section 7. Network dimensioning. Question No. 1 Doyouagreewithnetworkmodellingprinciplesthat areimplementedincurrent BU-LRAIC model? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Increments InLRAICmethodologyincrementsrefer toservices, for whichcostsarecalculated. InLRAIC model cost of increment are calculated and a particular mark-up is added to such costs to cover jointand common costs related to service provision.So the costs of services calculated in BU- LRAICmodel would consist of two components: incremental costs (derived mainly through engineering models) and common and joint cost (derived typically as a percentage mark-up on the network cost). Increments of current BU-LRAIC model are: Coverage (geographical scope of mobile network); 12 Traffic (voice and video calls, data services, SMS, MMS, etc); Subscribers. This BU-LRAIC model during sensitivity analysis will also be tested with a more narrow increment (for example particular service). In order to find out an incrementalcosts when the increment is defined as a particular service, two scenarios (one which includes the demand of particular service, other that does not) of an BU-LRAIC model needs to be ran and the difference in results would show incremental costs of particular service when increment is defined narrowly. Detailed description of mark-ups to cover common and joint costs is provided in sections 2.7 and 8.2. Mark-ups. Question No. 2 Do you agree with increment methodology provided above? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Modelling period In order to get a deeper insight into mobile network operator cost structure, it is common practice tocalculateservicecostsfor at least several periods. BU-LRAICmodelwill calculatenominal service costs for the years 2006 – 2010. Question No. 3 Do you agree that nominal service costs are calculated for the years 2006 – 2010? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 13 Comments and suggestions: Cost accounting Network costs derived in BU-LRAIC modelling have to be valued atreplacement cost. There are twomethodsof measuringcostsintermsof replacement cost: historical cost accountingand current cost accounting. Historicalcost accounting is an approach to accounting using asset values based on the actual amount on money paid for assets. The main advantages of using historical costs are simplicity and certainty. The major disadvantage of this approach is that book values may be based on out of datecostsduetoexclusionof adjustmentsforequipment pricechangesrelatedtotechnology improvement and (or) inflation. The objective of current cost accounting approach is to derive information whatit would cost to acquireassetsandother requiredresourcesnowor inthenear future. Thecurrent cost is calculated by using the current (or the latest) market prices (replacement cost) or adjusting the historical cost for asset specific inflation and therefore getting more realistic values of assets and other resources used in business. It has tobenotedthat BU-LRAICcalculation,as arule,is basedoncurrent cost basis.Inthe situation, when fixed assets that are still in use are outdated or no longer available on the market, it may be difficulttoassigntheircurrent price.Inthis situationtheconcept ofmodernequivalent asset (MEA) has to be adopted. MEA means an asset that would perform the same function as the asset to be replaced and is currently available on the market. Historical costs may be also used as a proxy for current costs, when assets are being purchased quite recently and no better source for current costs (including MEA) are available. Cost of capital WeightedAverageCost of Capital (WACC) is usedinBU-LRAICmodel for cost of capital estimation. WACCmeasuresacompany’scost of debt andequityfinancingweightedbythe 14 percentage of debt and percentage of equity in a company’s target capital structure. Calculation and elaboration of WACC of Lithuanian mobile network operators will be provided in a separate consultation. The planned date to provide the report of WACC estimation is 28 th of June, 2008. Question No. 4 Do you agree that WACC methodology is used to calculate cost of capital in BU-LRAIC model? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Technological background At themoment of the BU-LRAICmodelling, all Operators used GSMand UMTSnetwork technologies to provide services and there is no evidence for significant changes in mobile network technology in a modelling period of 2006 - 2010. Therefore, joint GSM / UMTS network approach is used in the network modelling It isalsoassumedthat voicetrafficcanbefullyaccomodatedinGSMnetwork. Astill 31 st of December 2007 total number of mobile network subscribers was 4921,1 1 thousand and number of UMTS subsribers was 152,9 1 thousand (UMTS subscribers proportion is equal to 3%). Assuming that majority of UMTS subscribers use UMTS network mostly for data services, therefore UMTS voice traffic proportion is insignificantly small in total voice traffic. Moredetailedexplanationabout network servicessplit betweenGSMandUMTSnetworkis provided in section 6. Demand. 1 Report on the electronic communications sector 2007 Quarter IV. www.rrt.lt 15 Taking into accountoperators practicalexperience in Lithuania and abroad two alternative core network architectures for handling the voice services traffic are being evaluated: - Establishment of Mobile Switching Centres (all voice in MSCs); - Establishment of Mobile Switching Centre Server and Media Gateways (all voice in MSS and MGW). BU-LRAICmodelhasafunctionalitytomodel bothof thescenarios. Basedonthemodelling results the most cost effective core network architecture will be selected. Dimensioning rules for all network elements are given in the section 7. Network Dimensioning. Mark – ups As already discused in section 2.2 Incrementsa mark-up approach is foreseen in the BU- LRAICmodel tocover commonandjoint costs. Themajor driver of network structureand development is service demand. Increasing service demand requires additional network capacity and appropriate network elements. This results in increased network related operational costs (e.g. more designing engineers are need to built and supervise network). Network related operational cost (headcount) is a driver for administration and support operational and capital costs. Service demand and mark-up relation is illustrated in figure 2: Figure 2. Service demand and mark-up relation Moredetaileddescriptionof mark-upsusageandallocationisprovidedinsection8.2Mark-up allocation. Referring to the best practices and international experience, mark-ups to cover common andjoint costsareestimatedbycollectingdatafromOperators, further theyareadjustedby benchmarks derived from foreign operators’ data. Currently it is assumed that latest data from the following sources will be adopted for the purpose of mark-up calculation: 1. Reports published by Information Society Directorate of the European Commission related tobottom-upcostingmodelsusedfor theinterconnectioncost calculationinEuropean Union countries. 2. FederalCommunications Commission (FCC) reports summarizing financialstatements of telecommunication operators in USA. Network demand Network infrastructure Network related operational costs Admin/support operational and capital costs % % 16 3. Australian Competition and Consumer Commission(ACCC) documents related to interconnection cost calculation in Australia based on the Long Run Incremental Costing. Question No. 5 Do you agree with mark-up methodology provided above? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 17 Outline of the modelling principles Sub-models The current BU-LRAIC model consists of two separate sub-models. Each of them includes different services (see Table 2). The sub-models are physically separated into two independent (not inter- linked) MS Excel models. Table 2. Sub-models of the BU-LRAIC model First sub-model – services included Second sub-model – services included Call origination Call termination Call within the operator’s network Datacommunication services (WAP, GPRS, EDGE, CSD, HSCSD, UMTS, HSDPA) Short messages services (SMS) Multimedia messages services (MMS) Point of interconnection services Point of interconnection capacity services In First sub-model the following costs are calculated: CAPEX related network costs; OPEX related network costs; CAPEX – administration and support; OPEX – administration and support. CAPEXrelatednetworkcostscover networkcomponentslistedinsection2.2List of network components 2 . CAPEX related network management system costs,OPEX related network costs, OPEX and CAPEX for administration and support, are listed and discussed in section 8.2. Mark- ups. The modelling principles used in the second BU-LRAIC sub-model are presented in Annex 1. Model scenarios Seeking to assess whether there are objective justified differences of costs of services modelled for different Operators, separatescenariosfor eachOperator operatinginLithuaniawouldbe created. Such approach is foreseen only for the first sub-model. Accordingly, the modelling scenarios in the first BU-LRAIC sub-model are as follows: Individual model scenarios for each Operator (in total three scenarios); 2 Costs of network management system (NMS) are calculated as a mark-up. 18 Generic model scenario for estimation of costs of efficient operator operating in competitive market (in total one scenario). Individual model scenarios are merged to one generic model scenario. Essential parameters that define generic model comprise: Market share(demandinputsaregenerallyassumedtobeequal to1/3fromthetotal market); Area coverage (averaged for all three Operators) Traffic profile (based on actual most efficient Operator’s data); Network equipment prices (based on most cost efficient Operator’s data). In the second sub-model simplified algorithm for calculating point of interconnection service related costs will be realised. Question No. 6 Do you agree with generic model assumptions provided above? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 19 Flow of BU-LRAIC modelling Objective of BU-LRAIC method is to define the costs of services that would be incurred by a new efficient operatorinacompetitivemarket assumingthat networkisrebuilt tomeet current and forward looking demand. Figure3illustrates theoverall flowof BU-LRAICmethodology. Accordingly, structureof this reference paper is aligned with the provided flow as well. Figure 3: the overall flow of BU-LRAIC methodology. Network demand Networkdemandsectionof themodel isrequiredtotranslatetherelevant portfolioof service demand into network dimensioning demand. As the dimensioned network should handle the traffic duringthepeak period, measuredservicevolumes aretranslatedintobusy-hour throughput network element demand. No network is built for today’s demand. Networks are constructed to meet future demands. In order toreflect this requirement theplanning horizontowhich networks aredesigned has tobe considered. In principle this is determined on the basis of economic considerations by examining the trade off between the costs of spare capacity in the short term and the costs of repeatedly augmenting capacity on a just-in-time basis. The detailed explanation of network demand principles is provided in section 6. Demand. Network dimensioning Following the identification of demand on a network element basis, the next stage in the process is the identification of the necessary network equipment to support the identified level of busy-hour demand. This is achieved through the use of engineering rules, which consider the modular nature of network equipment and hence identify the individual components within each defined network element. Thisthenallows variablecost structurestodeterminethecostsonanelement-by- element basis. Thedetailedexplanationof networkdimensioningprinciplesisprovidedinsection7. Network dimensioning. Network demand Network dimensioning Service costs calculation Network valuation 20 Network valuation Afterallnecessary networkequipments areidentifiedHomogenousCost Categories (HCC) are derived (physical units of network elements identified are multiplied by current prices and investments calculated later on are annualized). HCC is a set of costs, which have the same driver, the same cost volume relationship (CVR) pattern and the same rate of technology change. HCC values are calculated by multiplying physical units of network elements by current prices. Later on, calculated investments are annualized and mark-ups (both for CAPEX and OPEX costs) are set. All mobilenetworkelementsidentifiedduringnetworkdimensioningmust berevaluedat Gross Replacement Cost (GRC). Onthebasisof GRCvalueitsannual cost iscalculated.Thiscost includes both: Annualised capital costs (CAPEX); Annual operating expenses (OPEX). CAPEX costs are cost of capital and depreciation. OPEX costs consist of salaries (including social insurance), material andcostsof external services(external services–transportation, security, utilities, etc). The detailed analysis of methodologies to annualize CAPEX costs is provided in section 8.1.Cost annualization Detailedexplanation of Mark-ups used(bothfor CAPEXandOPEX) is providedinsection 8.2.Mark-ups List of HCCs, Network Components (NCs) and services used in the model is provided in section 5. Scope of the model. Service cost calculation The fundamentalprinciple of LRAIC methodology – costs are allocated to network components, network components are mapped with network services and in this way the costs are calculated (see figure 4). Figure 4: Cost allocation principle After HCC are derived they are allocated to a particular Network Component (NC). NCs represent logical elements that are functionally integrated and in combining those elements any services may be modelled. Later on, total NC costs are calculated by summing appropriate HCCs. NC costs are Homogeneous cost categories Network components Services 21 divided by service volumes. Costs of services are calculated on a basis of network component unit costs according to network component usage statistics. The detailed explanation of service cost calculation is provided in secion9. Service cost calculation. 22 Scope of the model The scope of the model is defined with respect to the range of services, network components and homogenous cost categories tobeincludedintotheBU-LRAICmodel. This determines the modelled network architecture and its granularity level. List of services List of services included in the first BU-LRAIC sub-model comprise: 1. Call origination; 2. Call termination; 3. Call within the operator’s network; 4. Data communication services (WAP, GPRS, EDGE, CSD, HSCSD); 5. Short messages services (SMS); 6. Multimedia messages services (MMS). List of services included in the second BU-LRAIC sub-model comprise: 1. Point of interconnection services; 2. Providing capacity in point of interconnection services. BU-LRAIC model is fitted to estimation of costs of services modelling the provision of services on the ground of GSM (900 MHz), DCS (1800 MHz), UMTS and HSDPA standards. Referring to the list of services in the first BU-LRAIC sub-modelprovided above and BU-LRAIC modellingprinciplescoveredinthisreferencepaper, respectiveoutcomeof thefirst BU-LRAIC sub-model is expected: Table 3. Outcome of the first BU-LRAIC sub-model Service Name U n i t c o s t s Costs of Network Components, Lt T o w e r a n d s i t e p r e p a r a t i o n B T S B S C N o d e B R N C M S C o r M S S / M G W T X / B T S - B S C T X / B S C - M S C o r B S C - M G W T X / M S C - M S C o r M G W - M G W S M S C M M S C S G S N / G G S N E D G E H S D P A W A P H L R B I L L I N G On-net call, per minute Call origination, per minute 23 Service Name U n i t c o s t s Costs of Network Components, Lt T o w e r a n d s i t e p r e p a r a t i o n B T S B S C N o d e B R N C M S C o r M S S / M G W T X / B T S - B S C T X / B S C - M S C o r B S C - M G W T X / M S C - M S C o r M G W - M G W S M S C M M S C S G S N / G G S N E D G E H S D P A W A P H L R B I L L I N G Call termination, per minute WAP data, per MB GPRS data, per MB EDGE data, per MB UMTS data, per MB HSDPA data per MB CSD data, per minute HSCSD data, per minute SMS, per message MMS, per message List of homogeneous cost categories Asit was mentionedinsection4, HCCvalues arecalculatedbyannualisingCAPEXcosts calculated in network dimensioning part of the model and by application of a set of mark-ups (both for CAPEX and OPEX costs). Table 4 indicates the list of homogeneous cost categories (HCC) in BU-LRAIC model. Table 4. List of HCC in BU-LRAIC model HCC name HCC sub-components SiteMacro cell: tower and site preparation Micro cell: site preparation Pico cell: site preparation Stand-alone transmission radio link: tower and site preparation 24 HCC name HCC sub-components BTSMacro cell: equipment (omni sector) Macro cell: equipment (2 sector) Macro cell: equipment (3 sector) Micro cell: equipment Pico cell: equipment Macro cell: TRXs Micro cell: TRXs Pico cell: TRXs Node BMacro cell: equipment (omni sector) Macro cell: equipment (2 sector) Macro cell: equipment (3 sector) Micro cell: equipment Pico cell: equipment PDH / SDH Radio link PDH radio link 2 Mb/s microwave link PDH radio link 8 Mb/s microwave link PDH radio link 16 Mb/s microwave link PDH radio link 32 Mb/s microwave link SDH radio link STM-1 microwave link (1+1) BSC / RNC BSC: base unit BSC: BS TRX extension TRC: transcoder base unit TRC: transcoder E1 (A interface) extension RNC: basic units RNC: extension units (Iub link) RNC: extension units (sectors) RNC: extension units (sites) 25 HCC name HCC sub-components MSC MSC: basic unit and software MSC: processor extension MSC: VLR, EIR extension MSC: SS7 extension MSC: trunk port extension MSC: I/O peripherals MSS: basic unit and software MSS: processor extension MGW: basic unit and software MGW: processor extension MGW: trunk port extension Network Functionality SFH: soft handover (network-wide) SFH: soft handover (MSS extension) SFH: soft handover (RNC extension) SFH: soft handover (NodeB extension) GSM/DCS: control (network-wide) GSM/DCS: control (MSC extension) GSM/DCS: control (BSC extension) GSM/DCS: control (BTS extension) Data Network EDGE: data transfer (network-wide) EDGE: data transfer (MSC extension) EDGE: data transfer (BSC extension) EDGE: data transfer (BTS extension) HSDPA: data transfer (network-wide) HSPDA: data transfer (MSS extension) HSDPA: data transfer (RNC extension) HSDPA: data transfer (NodeB extension) PCU: base unit PCU: extension units (Gb link) SGSN: base unit SGSN: processing extension GGSN: basic unit and licence WAP: gateway 26 HCC name HCC sub-components SMSC / MMSC SMSC: base unit SMSC: extension MMSC: base unit MMSC: extension Other Network SSP: service switching point (network-wide) SCP: service control point - base unit (pre-paid related) SCP: extension - subscribers SCP: extension - tps VMS: base unit VMS: extension HLR: base unit HLR: extension Billing IC hardware and software License and frequency fee Concession right - GSM 900 MHz (total value) Concession right - GSM1800 MHz (total value) Concession right - UMTS (total value) Leased Line Leased Lines BSC-MSC or BSC-MGW (RNC – MSC or RNC-MGW), per link Leased Lines BSC-MSC or BSC-MGW (RNC – MSC or RNC-MGW), per km Leased Lines MSC-MSC or MGW- MGW, per link Leased Lines MSC-MSC or MGW- MGW or MGW, per km Network management system 3 - List of network components List of NC used in BU-LRAIC model is as follows: Tower and site preparation; Base transceiver station (BTS); Base station controller (BSC); Node B; 3 Costs of network management system (NMS) are calculated as a mark-up. See section 8.2 Mark-ups 27 Radio network controller (RNC); Mobile switching centre (MSC); MSC server (MSS) and Media Gateway (MGW); Transmission (TX): o BTS-BSC (Node B – RNC); o BSC-MSC or BSC-MGW (RNC – MSC or RNC-MGW); o MSC-MSC or MGW – MGW; Short Message Service Centre (SMSC); Multimedia Messaging Service Centre (MMSC); Serving GPRS Support Node / Gateway GPRS Support Node (SGSN / GGSN); Enhanced Data rates for GSM Evolution (EDGE) (software and license); High-Speed Downlink Packet Access (HSDPA); Wireless Application Protocol (WAP) Gateway; Home Location Register (HLR); GPRS specific components; Billing system; Other costs. 28 Demand Mobile networks are dimensioned to handle traffic in the peak periods not the average traffic loads. The average traffic load must therefore be converted into peak loads by the application of traffic distribution factors drawn from the operator’s network management statistics. Consequently,data related to service demand and customer profile in BU-LRAIC model comprises of the following type of information: Service demand in terms of voice and video call minutes, SMS and MMS quantities, data minutes and bytes; Number of subscribers; Traffic flows, network element usage factors; Serviceprofilesintermsof dailytrafficstructure, set-uptime, rateof unsuccessful call attempts. Demand calculation is also split in two parts according to mobile network technology used: UMTS network; GSM network. The load is measured with busy hour Erlangs (BHE). BHE is calculated for services in the network by network element or transmission type between elements. BHEcalculation algorithms for services and two mobile network technologies analysed are presented in the following sections. GSM network The demand for GSM network consists of: 1. Voice calls, minutes 4 ; 2. SMS, messages; 3. MMS, messages; 4. Circuit data transmission (HSCSD/CSD), minutes; 5. Packet data transmission, megabytes. Voice calls minutes are analysed in four groups: On-net minutes 4 (to own mobile network); Off-net minutes 4 (to fixed networks, to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic); 4 Actual minutes of traffic in the network, not rounded billing system data. 29 Incomingminutes 4 (fromfixednetworks, international networksandfromother mobile networks, including MVNO‘s and inbound roaming traffic); Transit minutes 4 (traffic, whichisneither originatedandneither terminatedintheown network, bridge traffic between different operators). SMS is split into three groups: On-net SMS (to own mobile network); Outgoing SMS (to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic); IncomingSMS(frominternational networksandfromother mobilenetworks, including MVNO‘s and inbound roaming traffic). MMS is split into three groups: On-net MMS (to own mobile network); Outgoing MMS (to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic); IncomingMMS(frominternational networksandfromother mobilenetworks, including MVNO‘s and inbound roaming traffic). Packet datatrafficvolumescompriseof year total up-linkandyear total down-linktrafficloads megabytes 5 . Question No. 7 Do you agree thatdemand for GSM network consists ofvoicecalls,SMS,MMS,circuitdata transmission (HSCSD/CSD), packet data transmission? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 5 Volumes also include traffic of roaming data services. Actual megabytes of traffic in the network, not rounded billing system data. 30 Comments and suggestions: UMTS network Asit wasexplainedinsection2.6. Technological background,UMTSvoicetrafficproportionis insignificantly small in total voice traffic and it is accommodated in GSM network and at a current stage of network development no subscriber would connect to UMTS network just to use the voice. Therefore it is assumed that demand for UMTS network in modelling period consists of: 1. Video calls, minutes 6 ; 2. Packet data transmission, megabytes. Video calls are split into 3 groups: On-net minutes 6 (to own mobile network); Off-net minutes 6 (to fixed networks, to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic); Incomingminutes 6 (fromfixednetworks, international networksandfromother mobile networks, including MVNO‘s and inbound roaming traffic). Packet data traffic volumes in UMTS network are distinguished as it is in GSM network: year total up-link and year total down-link traffic load megabytes 7 . Question No. 8 Doyouagreethat thedemandfor UMTSnetworkconsistsof videocallsandpacket data transmission, assuming no voice traffic in UMTS? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 6 Actual minutes of traffic in the network, not rounded billing system data. 7 Volumes also include traffic of roaming data services. 31 Comments and suggestions: Service demand conversion As it was explained in the beginning of section 6 average service demand conversion algorithm will be constructed in order to calculate BHE traffic in each network element. Average service demand conversion to BHE will be done in the followings steps: 1. Calculating the number of call attempts (for voice and video calls); 2. Weighting billed traffic volumes by routing factors; 3. Adjusting billed voice and video minutes volumes for unbilled traffic; 4. Converting service volumes to minute equivalent; 5. Traffic volumes (minutes) adjusted by de-averaging factors. Call-attempts number (NCA, units) is calculated according to the following formula: CD call CA T N α · (1) Tcall – Voice or video calls traffic, minutes; αCD – Average call duration, minutes. Question No. 9 Do you agree call-attempts number is calculated according to the formula No. 1? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 32 Comments and suggestions: Weighted traffic volumes (TW, minutes, messages etc.) for particular network element by routing factors are calculated according to the following formula: R W f T T × · (2) Where: T – Traffic volume, minutes, messages etc; fR – Routing factor. Question No. 10 Do you agree that the weighted traffic volumes by routing factors are calculated according to the formula No. 2? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: RoutingfactorsaregivenintheRoutingfactorsmatrix(seetable5). Inthismatrixeachrow representsseparatetrafficof servicetypeandeachcolumnrepresent separateelement inthe 33 network. The routing factor is estimated having in mind traffic nature and it shows the minimum number of times particular service type traffic utilises particular network element. For instance, on- net SMS messages service in element BTS routing factor is two, which means on-net SMS in its path from user device to user device steps through BTS element on average two times. Table 5. Routing factors Service Type Routing factors BTS/ NodeB BSC/ RNC MSC / MGW or SMSC or MMSC or SGSN BTS - BSC BSC- MSC/ MGW MSC/MGW -MSC/MGW MSC/M GW-IC Voice traffic (minutes of use) On-net minutes 2.00 2.00 1.20 2.00 2.00 0.20 0.00 Off-net minutes 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Incoming minutes 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Transit minutes 0.00 0.00 1.00 0.00 0.00 0.00 2.00 Video traffic (minutes of use) On-net minutes 2.00 2.00 1.20 2.00 2.00 0.20 0.00 Off-net minutes 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Incoming minutes 1.00 1.00 1.00 1.00 1.00 0.00 1.00 SMS traffic (units) On-net SMS messages 2.00 2.00 1.00 2.00 2.00 0.00 0.00 Outgoing SMS messages 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Incoming SMS messages 1.00 1.00 1.00 1.00 1.00 0.00 1.00 MMS traffic (units) On-net MMS messages 2.00 2.00 1.00 2.00 2.00 0.00 0.00 Outgoing MMS messages 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Incoming MMS messages 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Circuit data traffic (minutes of use) HSCSD/CSD minutes 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Packet data traffic (Mbytes) Up-link (GSM subscribers) 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Down-link (GSM subscribers) 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Up-link (UMTS subscribers - data) 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Down-link (UMTS subscribers - data) 1.00 1.00 1.00 1.00 1.00 0.00 1.00 Question No. 11 Do you agree with services routing factors given in the table 5? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 34 Comments and suggestions: The adjustment for unbilled traffic in the network applies separately for the following traffic groups: 1. Voice calls; 2. Video calls. Unbilled traffic is related to call set-up duration and unsuccessful calls. Unsuccessful calls comprise of calls both when the line is busy and when the recipient does not answer the call. Other services (SMS, MMS and data) are billed as they use the network resources; therefore the adjustment for unbilled traffic is not needed. Traffic (TB+U) (billed plus unbilled traffic) is calculated according to the following formulas: A W U B f T T × · + (3) u CD u CD s A r S S f × × + × · 60 60 α α (4) ρ ρ − · 1 u r (5) Where: fA – Adjusting factor; TW – Weighted traffic for particular network element, minutes; Ss – Call set-up duration for successful calls, seconds; Su – Call set-up duration for unsuccessful calls, seconds; ru – Ratio of unsuccessful calls compared to successful calls, %; αCD – Average call duration, minutes 8 ; 8 Actual minutes traffic in the network 35 ρ – Completion rate - share of successful calls compared to total calls, %. Question No. 12 Doyouagreethatthetraffic(TB+U)(billedplusunbilledtraffic)iscalculatedaccordingtothe formulas No. 3, 4 and 5? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Parameters for calculation of TB+U are provided in the table 6. Table 6. TB+U calculation parameters Parameter Unit Values per total network Call set-up duration for successful calls seconds 8 Call set-up duration for unsuccessful calls seconds 15 Call duration minutes 2.00 Unsuccessful call attempts as percentage of successful calls % 30 Question No. 13 Do you agree with TB+U calculation parameters given in the table 6? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. 36 Comments and suggestions: In order to come to homogenous service volume measures, volumes of all non minute services are converted to minute equivalent. This homogenous service volume measure is needed in order to dimension elements, which are used in the network dimensioning generally. The list of converted services is provided below: 1. Video calls; 2. SMS (SMS); 3. MMS (MMS); 4. Packet data traffic for GSM network: a. GPRS transmission technology; b. EDGE transmission technology. 5. Packet data traffic for UMTS network: a. UMTS transmission technology; b. HSDPA transmission technology. Traffic conversion to minute equivalent is done according to the following formula: i U B C f T T × · + (6) Where: TC – Converted traffic, minutes; TB+U – Billed plus unbilled traffic volume, minutes, messages etc. fi – Refers to video calls, SMS, MMS, GPRS, EDGE, UMTS, HSDPA conversion factor; i – Indicates particular service (video calls, SMS, MMS, data services). 37 Question No. 14 Do you agree that the traffic volumes are converted to minute equivalent? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Question No. 15 Do you agree that the traffic volumes are converted to minute equivalent done according to the formula No. 6? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Do you agree that it is done according to the formula No. 6? Different conversion factors are applied for different type of services. 6.3.1. Conversion of video calls 38 Conversion factor for video call minutes to voice minute equivalent (fvi) is calculated according to the following formula: vo vi vi f ρ ρ · (7) Where: ρvi – Video call bit rate, kbit/s; ρvo – Voice call bit rate, kbit/s. Question No. 16 Do you agree that the conversion factor for video call minutes to minute equivalent is calculated according to the formula No. 7? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Video conversion factor is a proportion of video and voice bit rates, which technical average values are given in the table 7. Table 7. Video conversion parameters Parameter Unit Values per total network Voice call bit rate kbit/s 12.20 Video call bit rate kbit/s 64.00 Question No. 17 Do you agree with the voice call conversion parameters given in the table 7? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. 39 Comments and suggestions: 6.3.2. Conversion of SMS and MMS SMS message to minute equivalent conversion factor (fSMS) is calculated according to the following formula: 60 8 × · ch SMS SMS L f ρ (8) Where: LSMS – Average length of SMS message, bytes; ρch – SDCCH channel bit rate, kbit/s. Division by 60 is second conversion to minute number and multiplication by 8 is bytes conversion to bits. Question No. 18 Do you agree thatthe conversion factor for SMS message to minute equivalentiscalculated according to the formula No. 8? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. 40 Comments and suggestions: MMS message to minute equivalent conversion factor (fMMS) is calculated according to the following formula: MMS GPRS MMS L bytes f f × × · 20 2 (9) Where: fGPRS – GPRS MB to minute conversion factor; LMMS – Average length of MMS message, bytes. Division by 2 20 is bytes conversion to megabytes. Question No. 19 Do you agree thatthe conversion factor for MMS message to minute equivalent is calculated according to the formula No. 9? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: 41 SMSandMMStominuteequivalent conversionisbasedonSDCCHchannel bit rateandthe length of particular message, which technical values are given in the table 8. Table 8. SMS/MMS conversion parameters Parameter Unit Values per total network SDCCH bit rate bit/s 765.00 Average SMS length bytes 40.00 Average MMS length bytes 40,000.00 Question No. 20 Do you agree with the SMS/MMS conversion parameters given in the table 8? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: 6.3.3. Conversion of GSM packet data Packet data traffic conversion factor calculation for GSM network is split in two parts, according to thetechnologies, onwhichdatatransmissionisbased. So, therewill befollowingconversion factors calculated in GSM network: - GPRS MB to minute conversion factor; - EDGE MB to minute conversion factor; - General GSM MB to minute conversion factor. GPRS/EDGE data traffic conversion factor (fG or fE) in megabytes to minute equivalent is calculated according to the following formula: E or G E or G f ρ 1 60 1 8 1024 × × × · (10) Where: 42 ρG – GPRS bit rate, kbit/s; ρE – EDGE bit rate, kbit/s. Division by 60 is second conversion to minute, multiplication by 8 is bytes conversion to bits and multiplication by 1024 is megabyte conversion to kilobytes. Question No. 21 Do you agree that the conversion factor for packet data for GPRS/EDGE megabytes traffic to minute equivalent is calculated according to the formula No. 10? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: General data traffic conversion factor (fGSM) in GSM network in megabytes to minute equivalent is calculated according to the following formula: ( ) E E GW GD G GSM P P P f × + + × × × × · ρ ρ 1 60 1 8 1024 (11) Where: PGD – GPRS data traffic proportion in GSM network, %; PGW – GPRS WAP traffic proportion in GSM network, %; PE – EDGE data traffic proportion in GSM network, %; ρG – GPRS bit rate, kbit/s; ρE – EDGE bit rate, kbit/s. Division by 60 is second conversion to minute, multiplication by 8 is bytes conversion to bits and multiplication by 1024 is megabyte conversion to kilobytes. 43 Question No. 22 Do you agree that the conversion factor for packet data traffic (megabytes) in GSM network to minute equivalent is calculated according to the formula No. 11? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: 6.3.4. Conversion of UMTS data Packet data traffic conversion factor calculation for UMTS network is split in two parts, according to thetechnologies, onwhichdatatransmissionisbased. So, therewill befollowingconversion factors calculated in UMTS network: - UMTS MB to minute conversion factor; - HSDPA MB to minute conversion factor; - General UMTS MB to minute conversion factor. UMTS and HSDPA data traffic conversion factor (fumts and fHSDPA) in megabytes to minute equivalent is calculated according to the following formulas: umts umts f ρ 1 60 1 8 1024 × × × · (12) HSDPA HSDPA f ρ 1 60 1 8 × × · (13) Where: ρumts – UMTS bit rate, kbit/s; ρHSDPA – HSDPA bit rate, Mbit/s. 44 Division by 60 is second conversion to minute, multiplication by 8 is bytes conversion to bits and multiplication by 1024 is megabyte conversion to kilobytes. Question No. 23 Do you agree that the conversion factor to minute equivalent for packet data traffic in UMTS network (in megabytes) is calculated according to the formulas No. 12 and 13? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: General data traffic conversion factor (fUMTS) in UMTS network in megabytes to minute equivalent is calculated according to the following formula: HSDPA HSDPA umts umts UMTS P P f × × + × × × × · ρ ρ 1024 1 60 1 8 1024 (14) Where: Pumts – UMTS data traffic proportion in UMTS network, %; PHSDPA – HSDPA data traffic proportion in UMTS network, %; ρumts – UMTS bit rate, kbit/s; ρHSDPA – HSDPA bit rate, Mbit/s. Division by 60 is second conversion to minute, multiplication by 8 is bytes conversion to bits and multiplication by 1024 is megabyte conversion to kilobytes. Question No. 24 Do you agree that the conversion factor for general packet data traffic (megabytes) in UMTS network to minute equivalent is calculated according to the formula No. 14? Yes No 45 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Data to minute equivalent conversion factors are based on specific bit rates, which values are given in the table 9. Table 9. Data conversion parameters Parameter Unit Values per total network GPRS bit rate (ρG) kbit/s 13.04 EDGE bit rate (ρE) kbit/s 39.12 UMTS bit rate (ρumts) kbit/s 384.00 HSDPA bit rate (ρHSDPA ) Mbit/s 7.20 Question No. 25 Do you agree with the data conversion parameters given in the table 9? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: To sum up, converted to minute equivalent traffic ( j C T , minutes) for particular services (video calls, SMS, MMS, data) is calculated according to the following formula: 46 j j U B j C f T T × · + (15) Where: j U B T + – Specific service type traffic (minutes, SMS messages, MMS messages, data transmission); fj–Specificservicetypeconversionfactor tominuteequivalent. Thesefactorsarecalculated, respectively, in formulas No. 7, 8, 9 and 10. j – Defines a specific service. Question No. 26 Do you agree that the converted to minute equivalent traffic for particular services is calculated according to the formula No. 15? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: In the next stepaverage traffic (specific services) is adjusted to busy hour traffic. It is important also to note, that every network elementsgroup has different traffic aggregation level, so inhomogeneity factor (see table 11) for peak load distribution in time should be applied separately for each network element. Average traffic is adjusted to busy hour traffic (TBH, minutes) according to the following formulas: DA C BH f T T × · (16) H WA BA DA f r r f × × · (17) Where: TC – Converted to minute equivalent traffic, minutes; fDA – De-averaging factor; 47 rBA–Busyhourtraffictoaveragehourlytrafficratio. Thisfactorshowsproportionof busyand average traffic. Value of this factor is provided in the table 10. rWA – Working days traffic to average daily traffic ratio. This factor shows proportion of working day and average daily traffic. Value of this factor is provided the in the table 10. fH– Inhomogeneity factor for peak load distribution. This factor shows traffic aggregation level in the network element. Value of this factor is provided the in the table 11. Question No. 27 Do you agree that the average traffic is adjusted to busy hour traffic according to the formulas No. 16 and 17? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Table 10. De-averaging parameters Parameter Values per total network Busy hour traffic to average hourly traffic ratio (rBA) 2.00 Working days traffic to average daily traffic ratio (rWA) 1.40 Question No. 28 Do you agree with the de-averaging parameters given in the table 10? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. 48 Comments and suggestions: Table 11. Inhomogeneity factors BTS/ NodeB BSC/RNC MSC/MGW or SMSC or MMSC BTS-BSC BSC- MSC/MGW MSC/MGW -MSC/MGW MSC/MGW -IC 1.50 1.00 1.00 1.00 1.00 1.00 1.00 Question No. 29 Do you agree with the inhomogeneity factors given in the table 11? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Finally, year total busy hour traffic (weightedbyroutingfactors, adjustedby unbilledtraffic, convertedtominute equivalent,converted tobusy hourand de-averaged)volume forparticular service is converted to busy hour Erlangs (BHE, BHE) by applying the following formulas: YH BH f T BHE × · (18) 60 1 24 1 365 1 × × · YH f (19) 49 Where: TBH – Busy hour traffic, minutes; fYH – Conversion to Erlangs factor, 1/Year minutes. Question No. 30 Do you agree that year total busy hour traffic for particular service is converted to busy hour Erlangs (BHE) by applying the formulas No. 18 and 19? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Demand for GSM (BHEGSM, BHE) and UMTS (BHEUMTS, BHE) network is calculated according to the following formulas: ∑ × · i YH i BH GSM f T BHE (20) ∑ × · j YH j BH UMTS f T BHE (21) Where: i – Particular service in GSM network; j – Particular service in UMTS network. fYH – Conversion to Erlangs factor, 1/Year minutes. The same as it is in the formula No. 17. Question No. 31 Do you agree that demand for GSM and UMTS network is calculated according to the formulas No. 20 and 21? Yes No 50 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. Comments and suggestions: Next toevaluatedatatransmissionequipment inUMTSnetwork, busyhour megabytestraffic (weightedbyroutingfactors, convertedtobusyhour andde-averaged) inUMTSnetwork is calculated according to the following formulas: umts BH umts P T BHMB × × × · 24 1 365 1 (22) HSDPA BH HSDPA P T BHMB × × × · 24 1 365 1 (23) Where: TBH – Year total busy hour traffic, megabytes; Pumts – UMTS data traffic proportion in UMTS network, %; PHSDPA – HSDPA data traffic proportion in UMTS network, %; Division by 365 is year to days conversion and division by 24 is day to hour conversion. Question No. 32 Do you agree that busy hour megabytes traffic in UMTS network is calculated according to the formulas No. 22 and 23? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “request for expressing opinion”. 51 Comments and suggestions: 52 Network Dimensioning Having in mind complexity of network dimensioning, the algorithms are further divided into separate phases according to GSM and UMTS network architecture: 1. Base Station System (BSS) for GSM or Radio Network System (RNS) for UMTS; 2. Network Switching System (NSS). Elements of BSS or RNS layer are driven by the traffic demand and coverage of the network that is necessary to provide a given quality of service. Elements of NSS layer are driven by number of subscribers,trafficdemand(asin BSS/RNS layer) andotherparameters (e.g.numberofvoice mailboxes). Base and extension units Having in mind modular nature of mobile network, the dimensioning of network elements returns amount of base units (BU) and, if applicable, extensions units (EU) for particular network elements. Extension unit is an additional piece in base unit, which enhances BUcapacity. EUs are dimensioned, when there is not enough capacity to serve the traffic with n BUs, but n+1 BUs would lead to over capacity of resources needed. It is cost effective to install extension unit in base unit, thentoinstall additional baseunit as long as therequired traffic is served. Algorithms for calculation amounts of BU and EU are general for all network elements analysed in the scope of BU-LRAIC model. Figure 5 represents BU and EU calculation algorithm. Base unit Extension unit 1 Extension unit 2 Extension unit N . . . Element Operational Capacity Element Technical Capacity Extension unit 1 Extension unit 2 Extension unit N . . . M a x i m a l t e c h n i c a l c a p a c i t y Base unit = = = = M a x i m a l o p e r a t i o n a l c a p a c i t y D e s i g n u t i l i s a t i o n f a c t o r a t p l a n n i n g s t a g e H e a d r o o m a l l o w a n c e X X XX X X . . . . . . X = Figure 5: BU and EU calculation algorithm. Amount of network element base units (BU, units) required is generally calculated according to the following formula: 53 1 1 1 · ψ C DV BU (24) Where: DV – Dividend (demand) variable, measurement unit depends on the network element. DV is a particular traffic demand, on which the BU dimensioning depends directly. C ψ – Maximal operational capacity of network element, measurement unit is the same as for DV. Calculation of C ψ is provided in the formula No. 26. Operational capacity of a base unit or extension unit shows what traffic volumes it can maintain. Question No. 33 Do you agree base unit number is calculated according to the formula No. 24? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Amount of network element extension units (EU, units) required, if applicable, is generally calculated according to the following formula: ( ) 1 1 1 − × · ο ο ψ ES BU C C C BU EU Where: C ψ – Maximal operational capacity of a network element, measurement unit is the same as for DV. BU – Base unit, units; ο BU C – Base unit operational capacity, measurement unit depends on the network element; ο ES C –Extensionstep(additional extensionunit toBU)operational capacity, measurement unit depends on the network element. 54 Question No. 34 Do you agree that amount of a network element extension units (EU) requiredare calculated according to the formula No. 25? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Maximal operational capacity(C ψ , BHCA, subscribers, etc.)for aparticular networkelement is calculated according to the following formula: OA C C × · τ ψ (26) Where: τ C – Maximal technical capacity (including possible extension), measurement unit depends on the element. τ C shows maximal technical theoretical capacity of a network element in composition of BU and EU. OA – Operational allowance, %. Calculation of OA is provided in the formula No. 27. Question No. 35 Do you agree that maximal operational capacity is calculated according to the formula No. 26? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 55 Comments and suggestions: Operational allowance(OA, %)showsbothdesignandfutureplanningutilizationof anetwork equipment, expressed in percents. OA is calculated according to the following formula: U f HA OA × · (27) Where: HA – Headroom allowance, %. HA shows what part of BU or EU capacity is reserved for future traffic growth. Calculation of HA is provided in formula No. 29. fU – Design utilisation factor at a planning stage, %. It is equipment (vendor designated) maximum utilisation parameter. This utilisation parameter ensures that the equipment in the network is not overloaded by any transient spikes in demand. Question No. 36 Do you agree that operational allowance is calculated according to the formula No. 27? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 56 BU and ES operationalcapacity ( ο i C ,BHCA,subscribers, etc.)are calculatedaccording tothe following formula No. 24 by applying capacity values respectively. i i i HA C C × · ο (28) Where: Ci– Base unit or extension unit capacity, measurement unit depends on the element.Cidefines technical parameter of BU or EU capacity. HAi – Headroom allowance of BU or EU, %. Calculation of HA is provided in the formula No. 29. i – Specifies BU or EU. Question No. 37 Do you agree that operational capacity is calculated according to the formula No. 28? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Operational allowance and capacity calculations depend on the headroom allowance figure (HA, %). Headroom allowance is calculated according to the following formula: SDG r HA 1 · (29) Where: rSDG – Service demand growth ratio. rSDGdetermines the level of under-utilisation in the network, as a function of equipment planning periods and expected demand. Planning period shows the time it takes to make all the necessary preparations to bring new equipment online. This period can be fromweeks to years. 57 Consequently, traffic volumes by groups (demand aggregates given below) are planned according to the service demand growth. Question No. 38 Do you agree headroom allowance is calculated according to the formula No. 29? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Service demand growth ratio is calculated for each one following demand aggregates: Total subscribers number; CCS traffic, which comprises of voice, circuit data and converted to minute equivalent video traffic; Airinterfacetraffic, whichcomprisesof convertedtominuteequivalent SMS, MMSand packet data traffic. Packet data traffic in this case means GSM and UMTS traffic sum of up- link or down-link traffic subject to greater value. Particular demand growth ratio is assigned to a particular network element’s equipment. Question No. 39 Do you agree with the BU and EU calculation algorithm, provided in this section? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 58 Comments and suggestions: 1.1. Base Transceiver Station Thefirst step in dimensioning Base Station Subsystem(BSS) layer is modelling the Base Transceiver Stations (BTS). The outcome of the algorithms presented in this section is the number of BTS locations (sites). All of theBTScalculationspresentedinthissectionareexecutedbysubdividingRepublicof Lithuania territory (for coverage) and traffic (for capacity) into the following geographical areas: 1. Urban –Built up city or large town with large building and houses. Building heights above 4 storeys (about 10m). As a reference to Republic of Lithuania it would be major cities: Vilnius, Kaunas, Klaipeda, Siauliai, Panevezys, Alytus, and Marijampole. 2. Suburban–Village, highwayscatteredwithtreesandhouses. Someobstacles near the mobile, but not very congested. As a reference to Republic of Lithuania it would be previously not mentioned towns. 3. Rural 9 – Open space, forests, no tall trees or building in path.As a reference to Republic of Lithuania it would be the rest of Republic of Lithuania’s territory. Question No. 40 Do you agree that BTS locations calculations are executed by subdividing Republic of Lithuania territory into three geographical areas: urban, suburban and rural? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 9 Concepts of geographical areas used in this document are in line with the respective Okumura – Hata model concepts. 59 Comments and suggestions: Estimation of minimum number of BTS locations required is a function of requirements to meet coverage and traffic demand. Coverage requirements Minimal number of localizations requiredtosatisfycoveragerequirements ( Si COV N , units)are determined by the following formulas: 1 1 1 · c C C Si COV A A N (30) 2 2 6 . 2 3 5 . 1 R R A c C × · × × · (31) Where: C A– Coverage area in GSM network for a particular geographical area type, km 2 ; c C A– Coverage area of one cell, km 2 ; R – Maximal cell range, km. The basis of a formula for cell coverage area ( c C A , km 2 ) is a formula to calculate hexagon area. Question No. 41 Doyouagreethenumber of sites, requiredtomeet coveragedemandiscalculatedusing formulas No. 30 and 31? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 60 Comments and suggestions: Maximal cell range in every geographical area in the BU-LRAIC model is given below in the list: Urban area R = 1.20 km; Suburban area R = 3.00 km; Rural area R = 9.00 km. Parameters given above are taken as the assumed dimensioning parameters of average effectivelyutilizedBTSinRepublicof Lithuaniaat agivenareatoprovidecurrent qualityof services in the network. Question No. 42 Do you agree with the cell range parameters in GSM network given above? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Traffic demand 61 Number of sites required to meet traffic demand are calculated in the following steps: 1. Calculation of spectrum and physical capacity of a sector; 2. Calculation of effective sector capacity; 3. Calculation of a number of sites to meet the traffic demand. Sector capacities are calculated for each type of a cell (macro, micro and pico) as well as single and dual bands. As before, calculations for cells are also split by geographicalareas types. The traffic is split by geographical area type either. Consequently, following cell types for sector capacity calculations are used: Macro cell – urban area; Macro cell – suburban area; Macro cell – rural area; Micro cell – urban area; Micro cell – suburban area; Pico cell – urban area; Pico cell – suburban area. Spectrumcapacityof BTSisarequiredTRXsnumbertocoverthespectrumspecifications. A spectrum capacity (CSs, TRXs) for single band cell is calculated according to the following formula: 5 . 0 900 − 1 ] 1 ¸ × · TRX su Ss f N C λ (32) Where: N900 – Amount of 900 MHz spectrum, 2 x MHz; fsu –- Sector re-use factor for 900 MHz, units; λTRX–Bandwidthof atransceiver, MHz. Accordingtotechnical transceiver parameters, it is assumed λTRX equals to 0.2 MHz. Question No. 43 Do you agree thatspectrum capacity of a logicalsector for single band is calculated by using formula No. 32? Do you agree that λTRX equals to 0.2 MHz? Yes No 62 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Similarly, spectrum capacity (CSd, TRXs) of a logical sector for dual band is calculated according to the following formula: 1 ] 1 ¸ × + · TRX du Ss Sd f N C C λ 1800 (33) Where: CSs – Spectrum capacity for single band cell, TRXs; N1800 –- Amount of 1800 MHz spectrum, 2 x MHz; fdu –- Sector re-use factor for 1800 MHz, units; λTRX – Bandwidth of a transceiver, MHz. The same assumption is applied as in the formula No. 32. Question No. 44 Doyouagreethat aspectrumcapacityof alogical sector for dual bandcell iscalculated according to the formula No. 33? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 63 Comments and suggestions: Physical capacity (CP, TRXs) of a logical sector for single and dual band is a technical specification value. Effective sector capacity (CE, TRXs) for macro (urban, suburban and rural), micro, pico cell groups respectively singleanddual bandfrequencyis calculatedaccordingtothefollowing formula: ) ; min( P S E C C C · (34) Where: CS – Spectrum sector capacity (single or dual band), TRX; CP – Physical (equipment technical limitation) sector capacity (single or dual band), TRX. Question No. 45 Do you agree that effective sector capacity is calculated according to the formula No. 34? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: It isassumedinBU-LRAICmodel, that first TRXinBTShandles7trafficchannelsandeach additional TRX in BTS handles 8 traffic channels. 64 Question No. 46 Do you agree that first TRX in BTS handles 7 traffic channels and each additional TRX in BTS handles 8 traffic channels? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: TRXs conversion (NTRX, units) to channels (NCH, units) is done according to the following formula: TRX CH N N × · 7 (35) Where: NTRX – Number of TRXs, TRX. Question No. 47 Do you agree TRX to channels is converted according to the formula No. 35? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 65 As the TRXs number is converted to channels, effective sector capacity (CE) for single and dual band(inchannels)is translatedintoBHE ( Erl E C )accordingto Erlangs table, assumingblocking probability equals to 2%. Question No. 48 Do you agree that sector capacity is calculated using Erlangs table assuming blocking probability equals to 2%? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of sectors ( Se CAP N , units) to serve the traffic is calculated according to the following formula: BTS Erl E A Se CAP HA C T N × · (36) Where: TA – GSM services busy hour traffic part in particular geographical area, BHE. Erl E C– Effective sector capacity of dual or single band (for a particular cell type), BHE (see formula No. 34). HABTS – Headroom allowance of BTS equipment, %. Question No. 49 Do you agree thatsectors number toserve thetraffic in a cellis calculated according to the formula No. 36? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 66 Comments and suggestions: Number of sites ( Si CAP N , units) to serve the traffic is calculated according to the following formulas: Si Se Se CAP Si CAP N N N / · (37) ∑ ∑ · · × · 3 1 3 1 / i Si iSe i Si iSe Si Se N N i N (38) Where: Se CAP N– Sectors to serve the traffic, units; NSe/Si – Average number of sectors per site, units. Si iSe N– i sectored sites in GSM network, units. i – Defines number of sectors in the site (one, two or three). Question No. 50 Do you agree thatsites number to serve the traffic in a cell is calculated according to formulas No. 37 and 38? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 67 Comments and suggestions: Total amount of GSM sites Total amount of BTSsitesinamobilenetwork( Si Total N , units) iscalculatedaccordingtothe following formula: ) ; ( Si CAP Si COV Si Total N N Max N · (39) Where: Si COV N – Sites to serve the coverage, units; Si CAP N– Sites to serve the traffic, units. Question No. 51 Do you agree that total BTS sites number in a mobile network is calculated according to formula No. 39? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 68 It is assumed that each GSM site handles EDGE. Transceiver The second step in dimensioning Base Station Subsystem (BSS) layer is modelling of Transceivers (TRX). The outcome of the algorithms presented in this section is the number of TRX units. SimilarlytoBTSmodellingcase, all of theTRXcalculationsareexecutedbysubdividingthe Republic of Lithuania territory into the geographical areas, defined in section 7.2 Base Transceiver Station. Nextstep, to estimate TRX number, iscalculation of traffic load per one sector(TS, BHE).It is calculated according to the following formula: Se/Si N N T T Si Total A S × · (40) Where: TA – GSM services busy hour traffic part in particular geographical area, BHE. Si Total N– Total BTS sites in a mobile network, units; NSe/Si – Average number of sectors per site, units (see formula No. 38). Question No. 52 Do you agree busy hour traffic per sector is calculated according to the formula No. 40? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 69 Traffic load per one sector (TS, BHE) is translated into channels per sector ( Se CH N / ) according to Erlangs table with a blocking probability of 2%. Question No. 53 Do you agree that traffic load per one sector is translated into channels per sector according to Erlangs table with a blocking probability of 2%? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Further, number of TRXsper sector ( Se TRX N / , units) iscalculatedaccordingtothefollowing formulas for macro, micro and pico cells respectively: γ + · 7 ) ( / / Se CH Se TRX N macro N (41) 7 ) ( / / Se CH Se TRX N micro N · (42) 7 ) ( / / Se CH Se TRX N pico N · (43) Where: Se CH N / – Channels per sector, units; γ – TRX utilization adjustment, which equals to 0.5 TRX per sector. Non-uniform allowance is the ½ unit of capacity per sector allowance for the fact that traffic is not evenly distributed (in both time and space) across each area type. This adjustment is not applied to micro and pico cells, because their functionality is based on one transceiver system. Question No. 54 70 Doyouagreethat calculatednumberof TRXspersectorformacro, microandpicocellsis calculated according to the formulas No. 41, 42 and 43? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Total number of TRXsinmobilenetwork( TRX N , units)iscalculatedaccordingtothefollowing formulas: 1 Se Total Se TRX TRX N N N × · / (44) ) ( ) ( ) ( / / / / pico N micro N macro N N Se TRX Se TRX Se TRX Se TRX + + · (45) ∑ · × · 3 1 i Si iSe Se Total N i N (46) Where: Se TRX N / – Average number of TRXs per sector, units; Se Total N – Total amount of sectors in mobile network, units; Si iSe N– i sectored sites in GSM network, units. i – Defines number of sectors in the site (one, two or three) Question No. 55 Do you agree that number of TRXs is calculated according to the formulas No. 44, 45 and 46? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 71 Comments and suggestions: 1.2. Node B In UMTS network, the first step in dimensioning RNS layer is modelling the Node B element. The outcome of the algorithms presented in this section is the number of Node B sites. AllNode B calculations are divided by geographical area proportions. TheNodeBcalculationsareperformedbasedontheassumptionthat under forecastedtraffic volume (video and data) for 2010 the expected cell capacities / cell ranges for 3-sector Node B will be as follows: Urban area: cell range RUMTS = 0.45 km, cell capacity Se C min = 512 kbit/s. Suburban area: cell range RUMTS = 0.80 km, cell capacity Se C min = 256 kbit/s. Rural area: cell range RUMTS = 4.70 km, cell capacity Se C min = 256 kbit/s. These assumptions are provided for effectively working Node B in Republic of Lithuania territory. Question No. 56 Do you agree with UMTS network assumptions given above in the list? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 72 Comments and suggestions: Coverage UMTS network area coverage is split by geographical areas. Minimal number of NodeBsitesrequiredtosatisfycoveragerequirements( SiB COV N , units)are determined by the following formulas: 1 1 1 · c C C SiB COV bA bA N (47) 2 2 6 . 2 3 5 . 1 UMTS UMTS c C R R bA × · × × · (48) Where: C bA– Coverage area in UMTS network for a particular geographical area type, km 2 ; c C bA– Coverage area of one Node B cell, km 2 ; RUMTS – Maximal cell range, km. The basis of a formula for cell coverage area is a formula to calculate hexagon area. Question No. 57 Do you agree that minimal number of Node B sites required to satisfy coverage requirements is calculated according to the formulas No. 47 and 48? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 73 Comments and suggestions: Traffic demand Capacity required (CUMTS, kbit/s) to handle the traffic in UMTS network is calculated according to the following formula: LU C C BH UMTS × × × × · 1024 8 60 60 (49) Where: CBH– Capacity to be handled by UMTS network, BH megabytes (BHMB). It is a busy hour traffic part in particular geographical area and cell type (macro, micro and pico) in UMTS network. LU – Cell capacity utilization in BHT, %. Division by 60 and 60 is hour conversion to seconds, multiplication by 8 is a bytes conversion to bits and multiplication by 1024 is megabyte conversion to kilobytes. There is an assumption in the BU-LRAIC modelling that cell capacity in BHT in the UMTS network is utilized by 120%. Question No. 58 Do you agreethatUMTS network capacity required is calculated according to the formula No. 49? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 74 Comments and suggestions: Question No. 59 Do you agree that cell capacity utilization in BHT equals 120%? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Sector number ( SeB CAP N , units) to meet capacity requirements is calculated according to the following formula: Se UMTS SeB CAP C C N min · (50) Where: CUMTS – Capacity required to handle the traffic in UMTS network, kbit/s; Se C min – Sector capacity in BHT, kbit/s. Question No. 60 75 Do you agree cells number to meet capacity requirements is calculated according to the formula No. 50? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of sites ( SiB CAP N , units) to meet capacity requirements is calculated according to the following formulas: ∑ · · 3 1 i SeB CAP SiB iSeB i N N (51) ∑ · j SiB iSeB SiB CAP N N (52) Where: SeB CAP N– Sectors number to meet capacity requirements, units; SiB CAP N– Sites number to meet capacity requirements, units; Si iSeB N– i sectored sites in UMTS network, units; i – Defines number of sectors in the site (one, two or three); j – Defines particular site type. Question No. 61 Doyouagreesites number tomeet capacity requirements is calculatedaccordingtothe formulas No. 51 and 52? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 76 Comments and suggestions: Total amount of Node B sites Finally, total Node B sites number ( SiB Total N , units) is calculated according to the following formulas: Adj N N SiB CAP SiB Total + · (53) 2 SiB CAP SiB COV N N Adj − · (54) Where: SeB CAP N– Sectors to meet capacity requirements, units; SiB COV N– Sectors to meet coverage requirements, units; Adj – Adjustments (sites number) for planning assumptions, units. In UMTS network Node Bs number to meet capacity and coverage requirements are correlated figures, thereforeadjustment isappliedtocalculatedtotal NodeBsnumber, not themaximum value out the two, as it is in GSM BTSs case. It is assumed that each UMTS site handles HSDPA. Question No. 62 Do you agree that Node B sites number is calculated according to the formulas No. 53 and 54? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 77 Comments and suggestions: Sites In BU-LRAIC model to built mobile network for both UMTS and GSM, minimal number of sites is calculated to serve both types oftraffic. Sites are distinguished by particular types given in the following list: Urban macro cells (omni sector); Urban macro cells (2 sector); Urban macro cells (3 sector); Suburban macro cell (omni sector); Suburban macro cell (2 sector); Suburban macro cell (3 sector); Rural macro cell (omni sector); Rural macro cell (2 sector); Rural macro cell (3 sector); All micro cells; All pico cells. Total numberof sites(NSI,units)inthemobilenetworkiscalculatedaccordingtothefollowing formula: ∑ · i SiB i Si i SI N N Max N ) ; ( (55) Where: 78 Si i N – Particular i type sites in GSM network, units; Sib i N – Particular i type sites in UMTS network, units. i – Defines number of sectors in the site (one, two or three). Question No. 63 Doyouagreethat total numberof sitesinthemobilenetworkiscalculatedaccordingtothe formula No. 55? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.3. Base Station Controller Base station controller comprises of two parts: Base unit; Base station extension (TRXs). The outcome in this section is the amount of base units and the amount ofextension units. The dividend variable for both units calculation is number of TRXs. Total amount of BSCbaseunitsandextensionunitsiscalculatedaccordingtothealgorithm provided in section 7.1. Base and extension units with TRXs as dividend variable for both parts. Question No. 64 Do you agree thatamount of BSC base units and extension units are calculated according to algorithm provided in section 7.1. Base and extension units with TRXs as dividend variable for both parts? Yes No 79 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.4. Transcoder Controller Transcoder controller (TRC) comprises of two parts: Base unit; Transcoder E1 extension (A interfaces). Theoutcomeof thealgorithms presented in this section is the amount of base units and Transcoder E1 extension (A interfaces) units. Therefore, calculations are described respectively to these parts. The dividend variable for both parts is total 2 Mbit/s link capacity (CL, kbit/s) for E1 A interface. Total 2 Mbit/s link capacity is calculated according to the following formula: GSM PD GSM GSM C L BHE BHE BHE TH C − × × · 2048 ρ (56) Where: THGSM – Throughput in TRC, kbit/s. See formula No. 78. ρC – TRC compression rate, equal to 4; BHEGSM – Demand for GSM network, BHE (see formula No. 20); BHEPD – Packet data demand for GSM network, BHE. Division by 2048 is two megabytes conversion to kilobytes. Question No. 65 Do you agree that CL is calculated according to the formula No. 56? Yes No 80 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Next as it was in BSC calculations, TRC base units and extension units are calculated according to algorithmprovidedinsection7.1. BaseandextensionunitswithE1number (Ainterface) as dividend variable for both parts. Question No. 66 Do you agree thatamount of TRC base units and extension units are calculated according to algorithm provided in section 7.1. Base and extension units with E1 (Ainterface) as dividend variable for both parts? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.5. Radio Network Controller InUMTSnetwork, thenext stepindimensioningBSSlayer ismodellingtheRadioNetwork Controller (RNC). RNC comprises of the following parts: Base unit; 81 Extension units: o Iub links extension; o Sectors extension; o Sites extension. The outcome of the algorithms presented in this section is the amount of base units and extension units. Estimation of minimum number of RNC base units required is a function of requirements to meet Iub links number, sectors number and sites number. Total amount of RNC base units (BURNC, units) is calculated according to the following formulas: 1 1 1 1 , _ ¸ ¸ · Si RNC SiB Total Se RNC SeB Total Iub Iub RNC C N C N C TH Max BU ; ; (57) ∑ · × · 3 1 i SiB iSe SeB Total N i N (58) Where: THIub – Iub link throughput, Mbit/s. The same as UMTS throughput (see formula No. 79) CIub - Iub interface capacity, Mbit/s; SeB Total N– Total number of sectors in UMTS network, units; Se RNC C– RNC sectors capacity, units; SiB Total N– Total number of Node B sites in UMTS network, units; Si RNC C– RNC sites capacity, units; SiB iSe N– i sectored sites in UMTS network, units. i – Defines number of sectors in the site (one, two or three). Question No. 67 Do you agree that amount of RNC base units is calculated according to the formulas No. 57 and 58? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 82 Comments and suggestions: Extension units for RNC- lublinks extension, sectors extension andsites extension –are calculated according to the algorithm provided in section 7.1. Base and extension units. RNC Iub link throughput, sectors number and Node B sites number are the respective dividend variables. Question No. 68 Do you thatamount of RNC extension units are calculated according to algorithm provided in section 7.1. Base and extension units with RNC Iub link throughput, sectors number and Node B sites number as dividend variables? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.6. Mobile Switching Centre MobileSwitchingCentre(MSC) isdimensionedfor thefirst alternativecorenetworkmodelling scenario (see section 2.6. Technological background). All voice services traffic is handled by MSC and it comprises of the following parts: Base unit and software; 83 MSC extensions: o Processor extension; o VLR, EIR extension; o SS7 extension; o Trunk port extension; o Input/Output peripherals. Estimation of minimum number of MSC base units required is a function of requirements to meet: 1. Minimal network configurations; 2. Switching capacity (CPU part); 3. Ports number in MSC; 4. Subscribers number (VLR, EIR part). In each component’s case calculation algorithms are described below. For therequirementstomeet minimal networkconfigurationdemandthereisanassumption adoptedinBU-LRAICmodel that minimal number of MSCsinamobilenetworkistwo. This requirement is for the security reasons; in case one MSC willnot work another willmaintain the traffic. Question No. 69 Do you agree that minimal network requirement of MSC base units number is two? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 84 Number of MSCbaseunits( C MSC BU , units) tomeet switchingcapacityrequirements(central processing unit (CPU) case) are calculated according to the following formulas: ψ s MSC CABH C MSC C N BU , · (59) MSC CPU CPU s MSC N C C / , × · ψ (60) Where: CABH N– Call attempts in BHT, BHCA; ψ s MSC C , – Maximal MSC operational capacity, BHCA (see formula No. 26); CCPU – CPU capacity of MSC, BHCA; NCPU/MSC – CPUs per MSC, units. Question No. 70 Doyouagreethat number of MSCbaseunitstomeet switchingcapacityrequirementsis calculated according to the formulas No. 59 and 60? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Default MSC’sconfigurationinmost usual casegivesonePCUper MSC, consequentlyit is assumed there is one CPU per MSC. Question No. 71 Do you agree there is one CPU per MSC? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 85 Comments and suggestions: Number of MSCbaseunits( p MSC BU , units) tomeet port number requirementsiscalculated according to the following formula: ψ p MSC p p MSC C N BU , · (61) Where: Np – Total ports required, units; ψ p MSC C , – Maximal MSC operational capacity, ports (see formula No. 26). Question No. 72 Do you agree that number of MSC base units to meet port number requirements is calculated according to the formula No. 61? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Total number of ports required (Np, units) is calculated according to the following formula: is ic BSC p p p p N + + · (62) 86 Where: pBSC – BSC-facing ports, units; pic – Interconnect-facing ports, units; pis – Inter-switch 2 Mbit/s ports, units. Question No. 73 Do you agree that total number of ports required is calculated according to the formula No. 62? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of BSC-facing ports is the same number as total 2 Mbit/s link capacity, E1 A interfaces, which is calculated in section 7.7. Transcoder Controller (see formula No. 56). Number of interconnect-facing ports (pic, units) is calculated according to the following formula: 30 1 7 . 0 1 × × · ic ic T p (63) Where: Tic – Interconnect traffic, BHE. Division by 0.7 is BHE conversion to channels number and division by 30 is channels conversion to 2 Mbit ports number. Question No. 74 Do you agree that number of interconnect-facing ports is calculated according to the formula No. 63? Yes No 87 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Interconnect traffic (Tic, BHE) is calculated according to the following formula: IN OUT T IN OFF ic SMS SMS M M M T + + × + + · 2 (64) Where: MOFF – Total off-net minutes in MSC, BHE; MIN – Total incoming minutes in MSC, BHE; MT – Total transit minutes in MSC, BHE; SMSOUT – Total outgoing SMS messages in MSC, BHE; SMSIN – Total incoming SMS messages in MSC, BHE. Question No. 75 Do you agree that interconnect traffic is calculated according to the formula No. 64? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 88 Comments and suggestions: Number of inter-switch 2 Mbit/s ports (pis, units) is calculated according to the following formula: 30 1 7 . 0 1 × × · is is T p (65) Where: Tis – Inter-switch traffic, BHE. Division by 0.7 is BHE conversion to channels number and division by 30 is channels conversion to 2 Mbit ports number. Question No. 76 Do you agree number of inter-switch 2 Mbit/s ports is calculated according to the formula No. 65? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Inter-switch traffic (Tis, BHE) is calculated according to the following formula: ON ON ic SMS M T + · (66) 89 Where: MON – Total on-net minutes in MSC, BHE; SMSON – Total on-net SMS messages in MSC, BHE. Question No. 77 Do you agree that inter-switch traffic in MSC is calculated according to the formula No. 66? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of MSCbaseunits( S MSC BU , units) tomeet subscribers’ requirements(visitor location register (VLR, EIR) case) is calculated according to the following formula: ψ sub MSC GSM Sub S MSC C N BU , · (67) Where: GSM Sub N– GSM network subscribers, units; ψ sub MSC C , – Maximal MSC operational capacity, subscribers (see formula No. 26). Question No. 78 Do you agree that number of MSC base units to meet subscribers’ requirements is calculated according to the formula No. 67? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 90 Comments and suggestions: So, total amount of MSC base units (BUMSC, units) is calculated according to the following formula: ( ) S MSC p MSC C MSC MSC BU BU BU Max BU ; ; · (68) Where: C MSC BU– Number of MSC base units to meet switching capacity requirements, units; p MSC BU– Number of MSC base units to meet port number requirements, units; S MSC BU– Number of MSC base units to meet subscribers’ requirements, units. Question No. 79 Do you agree that total amount of MSC base units is calculated according to the formula No. 68? Yes No Ifyou answered “No”,commentand provide solutions, leadingbyinstruction setinthechapter “Request for expressing opinion”. Comments and suggestions: Number of extension units is calculated for: o Processor; 91 o VLR, EIR; o Signalling System (SS7); o Trunk ports. Dividend variable of processor part is number of BHCA, VLR, EIR – number of subscribers, SS7 – number of SS7 links, trunk ports – total number of ports required in MSC. Number of SS7 links is calculated according to the following formula: 7 / 7 SS p ic is SS N p p N + · (69) Where: pis – Inter-switch 2 Mbit/s ports, units; pic – Interconnect-facing ports, units. Np/SS7 – Trunks per SS7 link, units. Question No. 80 Do you agree that number of SS7 links is calculated according to the formula No. 69? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: It is assumed there are 16 trunks per SS7 link. Question No. 81 Do you agree that there are 16 trunks per SS7 link? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 92 Comments and suggestions: As Input/Output peripherals number in MSC is a part of MSC configuration, it equals to the number of MSCs base units. Question No. 82 Do youagree thatInput/OutputperipheralsnumberinMSCisequal tothenumberofMSCs base units? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Amount of MSC extension units for each, processor, VLR, EIR, trunk port and SS7 is calculated according to algorithm provided in section 7.1. Base and extension units with number of BHCA, number of subscribers, number of SS7 links, total number of ports required in MSC as dividend variables respectively. Question No. 83 Do you agree that amount of MSC extension units for each, processor, VLR, EIR, trunk port and SS7 is calculated according to algorithm provided in section 7.1. Base and extension units with number of BHCA, number of subscribers, number of SS7 links, total number of ports required in MSC as dividend variables respectively? 93 Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Mobile Switching Centre Server MobileSwitchingCentreServer(MSS)isdimensionedforthesecondalternativecorenetwork modelling scenario (see section 2.6. Technological background). MSShandlesvideocallsandvoiceservicestraffic. AsMSSisaprocessingunit of thecore networkandit doesnot handlethetraffic, itscalculationsarebasedonlyonbusyhour call attempts amount. The outcome of the algorithms presented in this section is the amount of MSS base and extension units. Estimation of minimum number of MSS base units required is a function of requirements to meet minimal network configurations and switching capacity (CPU part). For therequirementstomeet minimal networkconfigurationdemandthereisanassumption adopted in BU-LRAIC model that minimal number of MSS in a mobile network is one. Question No. 84 Do you agree that minimal network requirement of MSS base units number is one? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 94 Comments and suggestions: Number of MSSbaseunits( C MSS BU , units) tomeet switchingcapacityrequirements(central processing unit (CPU) case) are calculated according to the following formulas: ψ s MSS CABH C MSS C N BU , · (70) MSS CPU CPU s MSS N C C / , × · ψ (71) Where: CABH N– Call attempts in BHT, BHCA; ψ s MSS C , – Maximal MSS operational capacity, BHCA (see formula No. 26); CCPU – CPU capacity of MSS, BHCA; NCPU/MSS – CPUs per MSS, units. Question No. 85 Doyouagreethat number of MSSbaseunitstomeet switchingcapacityrequirementsis calculated according to the formulas No. 70 and 71? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 95 Comments and suggestions: Default MSS’sconfigurationinmost usual casegivesonePCUper MSS, consequentlyit is assumed there is one CPU per MSS. Question No. 86 Do you agree there is one CPU per MSS? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: So, total amount of MSS base units (BUMSS, units) is calculated according to the following formula: ( ) c MSS MSS MSS BU BU Max BU ; min · (72) Where: min MSS BU– Number of MSS base units to meet minimal requirements of the network, units; C MSS BU– Number of MSS base units to meet switching capacity requirements, units. Question No. 87 Do you agree that total amount of MSS base units is calculated according to the formula No. 72? 96 Yes No Ifyou answered “No”,commentand provide solutions, leadingbyinstruction setinthechapter “Request for expressing opinion”. Comments and suggestions: Amount of MSS extension units is calculated according to the algorithm provided in section 7.1. Base and extension units with number of BHCA as dividend variable. Question No. 88 Doyouagreethatamount of MSSextensionunitsiscalculatedaccordingtothealgorithm provided in section 7.1. Base and extension units with number of BHCA as dividend variable? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Media Gateway 97 Similarlyto MSS,Media Gateway (MG)is dimensioned for the second alternative core network modellingscenario(seesection2.6.Technological background).MGWhandlesvideocallsand voice services traffic. MGW comprises of the following parts: Base unit and software; MGW extensions: o Processor extension; o Trunk port extension; Estimation of minimum number of MGW base units required is a function of requirements to meet: 1. Minimal network configurations; 2. Switching capacity (CPU part); 3. Ports number in MGW; In each component’s case calculation algorithms are described below. For therequirementstomeet minimal networkconfigurationdemandthereisanassumption adopted in BU-LRAIC model that minimal number of MGWs in a mobile network is one. Question No. 89 Do you agree that minimal network requirement of MGW base units number is one? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of MGWbaseunits( C MGW BU , units) tomeet switchingcapacityrequirements(central processing unit (CPU) case) are calculated according to the following formulas: 98 ψ s MGW CABH C MGW C N BU , · (73) MGW CPU CPU s MGW N C C / , × · ψ (74) Where: CABH N– Call attempts in BHT, BHCA; ψ s MGW C , – Maximal MGW operational capacity, BHCA (see formula No. 26); CCPU – CPU capacity of MGW, BHCA; NCPU/MGW – CPUs per MGW, units. Question No. 90 Doyouagreethat number of MGWbaseunitstomeet switchingcapacityrequirementsis calculated according to the formulas No. 73 and 74? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Default MGW’sconfigurationinmost usual casegivesonePCUper MGW, consequentlyit is assumed there is one CPU per MGW. Question No. 91 Do you agree there is one CPU per MGW? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 99 Comments and suggestions: Number of MGWbaseunits( p MGW BU , units) tomeet portsnumber requirementsiscalculated according to the following formula: ψ p MGW p MGW p MGW C N BU , · (75) Where: p MGW N– Total ports required in MGW, units; ψ p MGW C , – Maximal MGW operational capacity, ports (see formula No. 26). Question No. 92 Do you agree that number of MGW base units to meet port number requirements is calculated according to the formula No. 75? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Total number of portsrequired( p MGW N , units)inMGWiscalculatedaccordingtothefollowing formula: 100 mgw is mgw ic RNC p MGW p p p N + + · (76) Where: pRNC – RNC-facing ports in MGW, units; mgw ic p– Interconnect-facing ports in MGW, units; mgw is p– Inter-switch 2 Mbit/s ports in MGW, units. Question No. 93 Do you agree that total number of ports required in MGW is calculated according to the formula No. 76? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of RNC-facing ports (pRNC, units) is calculated according to the following formula: 31 1 7 . 0 1 × × · RNC RNC T p (77) Where: TRNC – RNC-MGW traffic, BHE. Division by 0.7 is BHE conversion to channels number and division by 31 is channels conversion to 2 Mbit ports number. Question No. 94 Do you agree that number of RNC-facing ports is calculated according to the formula No. 77? Yes No 101 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: RNC-MGW traffic (TRNC, BHE) is calculated according to the following formula: Total Total Total RNC SMS VM M T + + · (78) Where: MTotal – Total voice minutes traffic in RNC, BHE; VMTotal – Total video minutes traffic in RNC, BHE; SMSTotal – Total SMS messages traffic in RNC, BHE. Question No. 95 Do you agree that RNC-MGW traffic is calculated according to the formula No. 78? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of interconnect-facing ports ( mgw ic p , units) in MGW is calculated according to the following formula: 102 31 1 7 . 0 1 × × · mgw ic mgw ic T p (79) Where: mgw ic T – Interconnect traffic in MGW, BHE. Division by 0.7 is BHE conversion to channels number and division by 31 is channels conversion to 2 Mbit ports number. Question No. 96 Do you agree that number of interconnect-facing ports in MGW is calculated according to the formula No. 79? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Interconnect traffic ( mgw ic T , BHE) in MGW is calculated according to the following formula: IN OFF IN OUT T IN OFF ic MV MV SMS SMS M M M T + + + + × + + · 2 Where: MOFF – Total off-net voice minutes in MGW, BHE; MIN – Total incoming voice minutes in MGW, BHE; MT – Total transit voice minutes in MGW, BHE; SMSOUT – Total outgoing SMS messages in MGW, BHE; SMSIN – Total incoming SMS messages in MGW, BHE; VMOFF – Total off-net video minutes in MGW, BHE; VMIN – Total incoming video minutes in MGW, BHE. 103 Question No. 97 Do you agree that interconnect traffic in MGW is calculated according to the formula No. 80? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of inter-switch 2 Mbit/s ports ( mgw is p , units) in MGW is calculated according to the following formula: 31 1 7 . 0 1 × × · mgw is mgw is T p (81) Where: mgw is T – Inter-switch traffic in MGW, BHE. Division by 0.7 is BHE conversion to channels number and division by 31 is channels conversion to 2 Mbit ports number. Question No. 98 Doyouagreenumber of inter-switch2Mbit/sportsinMGWiscalculatedaccordingtothe formula No. 81? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 104 Comments and suggestions: Inter-switch traffic ( mgw is T , BHE) in MGW is calculated according to the following formula: ON ON ON mgw is VM SMS M T + + · (82) Where: MON – Total on-net voice minutes traffic in MGW, BHE; SMSON – Total on-net SMS messages traffic in MGW, BHE; VMON – Total on-net video minutes traffic in MGW, BHE. Question No. 99 Do you agree that inter-switch traffic in MGW is calculated according to the formula No. 82? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: So, total amount of MGW base units (BUMGW, units) is calculated according to the following formula: ( ) p MGW C MGW MGW MGW BU BU BU Max BU ; ; min · (83) Where: 105 min MGW BU– Number of MGW base units to meet minimal network requirements, units; C MGW BU– Number of MGW base units to meet switching capacity requirements, units; p MGW BU– Number of MGW base units to meet port number requirements, units. Question No. 100 Do you agree that total amount of MGW base units is calculated according to the formula No. 83? Yes No Ifyou answered “No”,commentand provide solutions, leadingbyinstruction setinthechapter “Request for expressing opinion”. Comments and suggestions: Amount of MGWextensionunitsfor bothprocessor andportspart iscalculatedaccordingto algorithmprovidedinsection7.1. Baseandextensionunitswithnumber of BHCAandtotal number of ports required in MGW as dividend variables respectively. Question No. 101 Doyouagreethatamount of MGWextension units for bothprocessor andports part is calculated according to algorithm provided in section 7.1. Base and extension units with number of BHCA and total number of ports required in MGW as dividend variables respectively? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 106 Comments and suggestions: SMSC and MMSC The fourth step in dimensioning NSSlayer is modelling the SMSC and MMSC. Each SMSC and MMSC comprises of two parts: Base unit; Extension units. The outcome of the algorithm presented in this section is number of base unit and extension unit for SMSC and MMSC. SMSC and MMSC in BU-LRAIC are dimensioned according to the same engineering rules, so one algorithm for both network elements is provided. Thedividendvariablefor bothparts isthenumber of busyhour messages (SMSor MMS messages) per second (MMS/s, messages/s) and is calculated according to the following formula: MS MS s MS f T N × · 60 1 / (84) Where: fMS– Message to minute equivalent conversion factor. They are calculated in the formulas No. 8 and 9. TMS–Total minuteequivalent for messagesinthenetworkelement per minuteinbusyhour, minutes. Question No. 102 Do you agree that the number of busy hour messages per second is calculated according to the formula No. 84? 107 Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Amount of SMSC and MMSC base units and extension units is calculated according to algorithm provided in section 7.1. Base and extension units with busy hour SMS and MMS messages as dividend variable. Question No. 103 Do you agree that amount of SMSC and MMSC base units and extension units are calculated according to algorithm provided in section 7.1. Base and extension unitswith busy hour SMS and MMS as dividend variables? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.7. Packet Control Unit and Serving GPRS Support Node EveryPacket Control Unit (PCU) andServingGPRSSupport Node(SGSN)comprisesof two parts: 108 Base unit; Extension units. The outcome of the algorithm presented in this section is number of base units and extension units for PCU, SGSN and GGSN. GGSN is presented under model assumption. First step in PCU base unit number calculation is to estimate Gb link throughput (THGb, Mbit/s). So, it is calculated according to the formula: , _ ¸ ¸ + × · UMTS UMTSd UMTSu GSM GSMd GSMu Gb f T T f T T TH ) ; max( ) ; max( 60 1 (85) Where: TGSMu – Total minute equivalent for up-link packet data megabytes in the GSM network element per minute in busy hour, minutes; TGSMd – Total minute equivalent for down-link packet data megabytes in the GSM network element per minute in busy hour, minutes; fGSM – GSM data traffic to minute equivalent conversion factor (see formula No. 11); TUMTSu – Total minute equivalent for up-link packet data megabytes in the UMTS network element per minute in busy hour, minutes; TUMTSd–Total minuteequivalent for down-linkpacket datamegabytes intheUMTSnetwork element per minute in busy hour, minutes; fUMTS – UMTS data traffic to minute equivalent conversion factor (see formula No. 14). Question No. 104 Do you agree the number Gb link throughput is calculated according to the formula No. 85? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 109 Comments and suggestions: Number of PCU base units is calculated according to the formula: , _ ¸ ¸ + 1 1 1 · BSC RNC PCU Gb PCU BU BU C TH BU ; max ψ (86) Where: THGb – Gb link throughput, Mbit/s (see formula No. 85); ψ PCU C– Maximal operational capacity of PCU, Mbit/s (see formula No. 26); BURNC – RNC base units, units (see formula No. 57); BUBSC – BSC base units, units (see formula No. 68). Question No. 105 Do you agree that number of PCU base units is calculated according to the formula No. 86? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: First stepinSGSNbaseunit number calculationistoestimateGblinkthroughput (THGbp, BH packets/s). So, it is calculated according to the formula: 110 p b Gb Gbp TH TH / 6 8 10 α × · (87) Where: THGb – Gb link throughput, Mbit/s (see formula No. 85); αb/p – Average number of bytes per packet, bytes; It is assumed αb/p is equal to 650 bytes. Question No. 106 Do you agree that Gb link throughput is calculated according to the formula No. 87? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of SGSN base units (BUSGSN, units) is calculated according to the formula: 1 1 1 · ψ SGSN Gbp SGSN C TH BU (88) Where: THGbp – Gb link throughput, BH packets/s (see formula No. 87); ψ SGSN C– Maximal operational capacity of SGSN, BH packets/s (see formula No. 26). Question No. 107 Do you agree that number of SGSN base units is calculated according to the formula No. 88? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 111 Comments and suggestions: Amount of PCU and SGSN extension units is calculated according to algorithm provided in section 7.1. Base and extension units with Gb link throughput (Mbit/s) and Gb link throughput (BH packets/ s) as dividend variables respectively. Question No. 108 Doyouagreethat amount of PCUandSGSNextensionunits iscalculatedaccordingto algorithm provided in section 7.1. Base and extension units with Gb link throughput (Mbit/s) and Gb link throughput (BH packets/s) as dividend variables? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.8. Voice Mail Service and Home Location Register Each Voice mail service (VMS) and Home location register (HLR) comprises of two parts: Base unit; Extension units. 112 The outcome of the algorithm presented in this section is number of base units and extension units for VMSandHLR. Thedividendvariablefor VMSis measuredbymailboxes andHLRby subscribers’ number. Amount of VMSandHLRbaseunitsandextensionunitsiscalculatedaccordingtoalgorithm providedinsection7.1. Baseandextensionunitswithmailboxesandsubscribersnumber as dividend variables. Question No. 109 Doyouagreethat amount of VMSandHLRbaseunitsandextensionunitsarecalculated accordingtoalgorithmprovidedinsection7.1. Baseandextensionunitswithmailboxesand subscribers number as dividend variables? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.9. Service Control Point (Intelligent Network) ServiceControl Point (SCP)isthenetworkelement, whichservicespre-paidsubscribers. SCP comprises of two parts: Base unit (pre - paid related); Extension: o Subscribers part; o Transactions part. Estimation of minimum number of SCP base units required is a function of requirements to meet subscribers and traffic demand.In each component’s casecalculation algorithms aredescribed below. Total amount of SCP base units (BUSCP, units) is calculated according to the following formulas: 113 , _ ¸ ¸ · ψ ψ Tr SCP s Tr sub SCP pre SCP C N C N Max MU , / , ; (89) ψ Tr SCP CA TSub pre s Tr C N N N N , / 60 × × · (90) Where: Npre – Pre-paid subscribers, units; NTr/s – Busy hour transactions per second, units; ψ sub SCP C , – Maximal operational capacity, subscribers (see formula No. 26); ψ Tr SCP C , – Maximal operational capacity, BH transactions/s (see formula No. 26); NTSub – GSM and UMTS subscribers, units; NCA – BH voice call attempts per minute, BHCA/min. Question No. 110 Do you agree the total amount of SCP base units is calculated according to the formulas No. 89 and 90? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: AmountofSCP extension units for subscribers and transactions partis calculated according to algorithmprovidedinsection7.1. Baseandextensionunitswithsubscribers’ number andBH transactions per second dividend variables. Question No. 111 Doyouagreethat amount of SCPextensionunitsfor subscribersandtransactionspart is 114 calculated according to algorithmprovided in section7.1. Base and extension unitswith subscribers’ number and BH transactions per second dividend variables? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.10. Network Functionality Network functionality (NF) elements in BU-LRAIC comprise of the following elements: - Soft handover (SFH); - GSM/DCS control; - EDGE data transfer; - HSDPA data transfer. BU-LRAIC model assumes that amount of NE elements is equal to amount of other NE, according to the table 12. Table 12. Amount of NE elements HCC name Total amount of units SFH: soft handover (network-wide) One unit in a mobile network SFH: soft handover (RNC extension) Equal to a number RNC base units SFH: soft handover (NodeB extension) Equal to a number of Node Bs GSM/DCS: control (network-wide) One unit in a mobile network GSM/DCS: control (MSC extension) Equal to a number of MSC base units GSM/DCS: control (BSC extension) Equal to a number of BSC base units GSM/DCS: control (BTS extension) Equal to a number of dual band BTS sites EDGE: data transfer (network-wide) One unit in a mobile network EDGE: data transfer (MSC extension) Equal to a number of MSC base units EDGE: data transfer (BSC extension) Equal to a number of BSC base units 115 EDGE: data transfer (BTS extension) Equal to a number of BTS macro cells HSDPA: data transfer (network-wide) One unit in a mobile network HSDPA: data transfer (MSS extension) Equal to a number of MSS base units HSDPA: data transfer (RNC extension) Equal to a number of RNC base units HSDPA: data transfer (NodeB extension) Total number of Node B sites in the network Question No. 112 Do you agree that amount of the network functionality elements is determined according to the principles given in the table 12? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 1.11. Other Network It is assumed that in BU-LRAIC model there is one billing system (hardware and software). Also it is assumed that there is one Gateway GPRS Support Node (GGSN) and one WAP gateway in the GSM network. Question No. 113 Do youagree there is one billing hardware and software aggregate (separate for interconnection) in the network? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 116 Comments and suggestions: 1.12. Transmission Transmissionnetworkconnectsphysicallyseparatednodesinmobilenetwork(BTSs/NodeB, BSCs/RNC,MSCsorMSS/MGWs) andallowstransmissionof communicationsignalsover far distances. Transmission network, according to the mobile network topology in BU-LRAIC model is split into the following hierarchical levels: Backhaul transmission: oBTS/Node B – BSC/RNC; Core transmission: o BSC/RNC – MSC or BSC/RNC – MGW transmission; o MSC – MSC or MGW – MGW transmission. BU – LRAIC model also assumes two different transmission techniques: Microwaves (PDH in backhaul transmission and SDH in core transmission); Leased lines (in core transmission). Thefollowingsectionsprovidealgorithmsforcalculatingtransmissionnetworkcapacityineach hierarchical level of the mobile network. Backhaul transmission Backhaul transmission connects BTSs with BSCs (GSM network) and Node Bs with RNCs (UMTS network). PDH technology is used to transport data between mentioned nodes of mobile network. PDH comprise the following transmission modes: PDH radio link 2 Mbit/s microwave link; 117 PDH radio link 8 Mbit/s microwave link; PDH radio link 16 Mbit/s microwave link; PDH radio link 32 Mbit/s microwave link. To calculate backhaul transmission costs the proportion of each using PDH radio link needs to be estimated. Consequently, essential assumption in backhaul transmission is made that BTSs/Node Bs arelinkedtoonetransmissionline. Then, theproportionof eachPDHradiolink is set depending on: The number of sites (BTS/Node B) per transmission line which connects BSC/RNC and the furthest BTS/Node B; Average throughput per site. Figure 6 illustrates principal transmission scheme between BTSs/Node Bs and BSCs/RNCs. N 1 =N 2 =N 3 - Average throughput per site in (kbit/s) Figure 6: Calculating proportions of each PDH radio link. Key characteristics for backhaul transmission modelling are: Transmission network equipment is built with minimal capacity level to assure BTS/Node B – BSC/RNC transmission on the level sufficient to serve the traffic demand. Each BTS/Node B that belongs to particular transmission line put additional volume of data to the transmission line. It results in higher loading of transmission line coming up to BSC and lower loading moving backwards. Assumption that the average number of sites per transmission line is three is set. Question No. 114 Do you agree with the backhaul transmission modelling principles given above? Yes No BSC/RNC BTS/Node B BTS/Node B BTS/Node B T 1 =N 1 T 2 =T 1 +N 2 T 3 =T 2 +N 3 N 1 N 2 N 3 118 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Below, algorithm of PDH radio links number calculation by different transmission modes (2 Mbit/s; 8Mbit/s; 16Mbit/s; 32Mbit/s) isprovided. Asall PDHradiolinkmodesarecalculatedwith reference to one algorithm, common PDH radio link number calculation algorithm is provided. At first, average throughput per site (αTH, kbit/s) is calculated according to the following formula: SI GSM UMTS TH N TH TH + · α (91) Where: THUMTS–Total throughout per UMTSsitestakinginaccount all typeof cells, sub-areasand sectors, kbit/s; THGSM – Total throughput per GSM sites taking in account all type of cells, sub-areas and sectors, kbit/s; NSI – Total number of sites (both GSM and UMTS networks), units (calculated in formula No. 51). Question No. 115 Do you agree that average throughput per site (kbit/s) is calculated according to the formula No. 91? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 119 Comments and suggestions: THUMTS is calculated according to the following formula: UMTS k j i k j i UMTS k j i UMTS N TH TH , , , , , , × · ∑ (92) Where: UMTS k j i TH , , – Throughput per UMTS site, kbit/s; UMTS k j i N , , – Number of UMTS sites, units; i – Type of area; j – Type of cell; k – Type of sector. Question No. 116 Do you agree that total throughout per UMTS site taking into account all type of cells, sub-areas and sectors is calculated according to the formula No. 92? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 120 Comments and suggestions: UMTS k j i TH , , is calculated according to the following formula: i N C P C P N TH Si iSeB Se HSDPA HSDPA Se UMTS SeB CAP UMTS k j i × × + × × · ) ( min , , (93) Where: SeB CAP N- Number of sectors to meet capacity requirements in all types of area and cell, calculated in formula No. 50, units; Pumts – UMTS data traffic proportion in UMTS network, %; PHSDPA – HSDPA data traffic proportion in UMTS network, %; Se C min – Sector capacity in BHT in all types of area and cell, kbit/s; Se HSDPA C- Sector capacity – HSDPA, in BHT in all types of area and cell, kbit/s; Si iSeB N– i sectored sites in UMTS network, calculated in formula No. 51, units; i - 1, 2 or 3, respectively to omni sector, 2 sector or 3 sector. Question No. 117 Do you agree that throughout per UMTS site ( UMTS k j i TH , , ) is calculated according to the formula No. 93? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 121 Comments and suggestions: THGSM is calculated according to the following formula: GSM k j i k j i GSM k j i GSM N TH TH , , , , , , × · ∑ (94) Where: GSM k j i TH , , - Throughput per GSM site, kbit/s; GSM k j i N , , - Number of GSM sites, units; i – Type of area; j – Type of cell; k – Type of sector. Question No. 118 Do you agree that total throughout per GSM site taking in account all type of cells, sub-areas and sectors is calculated according to the formula No. 94? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 122 Comments and suggestions: GSM k j i TH , , is calculated according to the following formula: i TH N TH Se Se TRX GSM k j i × × · / , , (95) Where: Se TRX N / -Number of TRXs per sector (taking in account alltypes of area and cell), calculated in formulas No. 41, 42, 43, units; TH Se – Throughput per TRX, kbit/s; as there are 8 channels in one TRX and it is assumed that throughput per onechannel equals16kbit/s, throughput per TRXiscalculatedmultiplying8 (channels) by 16 (throughput per one channel); i - 1, 2 or 3, respectively to omni sector, 2 sector or 3 sector. Question No. 119 Do you agree that throughout per GSM site ( GSM k j i TH , , ) is calculated according to the formula No. 95? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 123 Comments and suggestions: Further, link capacity of transmission modes ( l i C , circuits) is calculated according to the following formula: lc i b l i N OA C C × × · (96) Where: Cb – Basic 2 Mbit/s link capacity, kbit/s; OA – Operational allowance, %; lc i N– Number, which multiplies basic 2 Mbit/s link capacity; i – Links at 2 Mbit/s, 8 Mbit/s, 16 Mbit/s, 32 Mbit/s. Question No. 120 Doyouagreethatlinkcapacityof transmissionmodes(kbit/s)iscalculatedaccordingtothe formula No. 96? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 124 Maximumnumber of transmission modes sections per transmission line ( sec , MAX i N , units) is calculated according to the following formula: 1 ] 1 ¸ · TH l i MAX i C N α sec , (97) Where: l i C– Particular link capacity of transmission modes, kbit/s; αTH– average throughput per site, kbit/s. Calculation of this dimension is provided in formula No. 91. Question No. 121 Do you agree thatmaximum number of transmission modes sections per transmission line is calculated according to formula No. 97? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Number of transmissionmodessectionsper transmissionlinecalculatesindifferent formulas. Number of 2Mbit/ssectionsper transmissionline( sec 2 N , units) iscalculatedaccordingtothe following formula: ) ; ( sec , 2 sec 2 BTS MAX N MIN N α · (98) Where: sec , 2 MAX N– Maximum number of 2 Mbit/s sections per transmission line, units; α BTS – Average number of BTS sites per transmission line, units. 125 Number of 8Mbit/ssectionsper transmissionline( sec 8 N , units) iscalculatedaccordingtothe following formula: sec 2 sec , 8 sec 8 ) ; ( N N MIN N BTS MAX − · α (99) Where: sec , 8 MAX N– Maximum number of 8 Mbit/s sections per transmission line, units; α BTS – Average number of BTS sites per transmission line, units; sec 2 N– Number of 2 Mbit/s sections per transmission line, units. Numberof 16Mbit/ssectionspertransmissionline( sec 16 N , units)iscalculatedaccordingtothe following formula: sec 2 sec 8 ,sec 16 sec 16 ) ; ( N N N MIN N BTS MAX − − · α (100) Where: sec , 16 MAX N– Maximum number of 16 Mbit/s sections per transmission line, units; α BTS – Average number of BTS sites per transmission line, units; sec 2 N– Number of 2 Mbit/s sections per transmission line, units. sec 8 N– Number of 8 Mbit/s sections per transmission line, units. Numberof 32Mbit/ssectionspertransmissionline( sec 32 N , units)iscalculatedaccordingtothe following formula: sec 2 sec 8 sec 16 sec , 32 sec 32 ) ; ( N N N N MIN N BTS MAX − − − · α (101) Where: sec , 32 MAX N– Maximum number of 16 Mbit/s sections per transmission line, units; α BTS – Average number of BTS sites per transmission line, units; sec 2 N– Number of 2 Mbit/s sections per transmission line, units. sec 8 N– Number of 8 Mbit/s sections per transmission line, units. sec 16 N– Number of 16 Mbit/s sections per transmission line, units. Question No. 122 126 Do you agree thatnumber of transmission modes sections per transmission line is calculated according to formulas No. 98, 99, 100 and 101? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Share of transmission modes sections per transmission line ( sec i P , %) is calculated according to the following formula: ) ; ( sec BTS sec sec N MIN N P i i α · (102) Where: sec i N– Number of transmission mode sections per transmission line, units; i – 2 Mbit/s, 8 Mbit/s, 16 Mbit/s, 32 Mbit/s; α BTS – Average number of BTS sites per transmission line, units; N sec – Total number of transmission modes sections per transmission line, units. Question No. 123 Doyouagreethatshareof transmissionmodessectionsper transmissionlineiscalculated according to formula No. 102? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 127 Comments and suggestions: Finally, PDHradiolinksnumber bydifferent transmissionmodes( PDH i N , units) iscalculated according to the following formula: Si Total i PDH i N P N × · sec (103) Where: sec i P– Share of transmission modes sections per transmission line, %; i – 2 Mb/s, 8 Mb/s, 16 Mb/s, 32 Mb/s; Si Total N – Total number of BTSs, units. This number is calculated in formula No. 39. Question No. 124 Doyouagreethat numberof PDHradiolinktransmissionmodesiscalculatedaccordingto formula No. 103? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Core transmission 128 As it was mentioned before core transmission connects BSCs/RNCs and MSCs or MGWs and two types of technology are used to: SDH radio links; Leased lines. First of all, number of SDH radio links in BSC/RNC – MSC or BSC/RNC – MGW hierarchy level is calculated. Below, the calculation algorithm is provided. Number of BSC/RNC-MSC or BSC/RNC – MGWsectionstomeet capacitydemand( sec SDH N , units)iscalculatedaccordingtothefollowing formula: 1 1 1 × · ψ SDH BR C SDH C N D N sec (104) Where: DC – BSC/RNC-MSC or BSC/RNC-MGW demand for capacity covered by radio links, 2Mbit/s; NBR–Numberof BSCsandRNCs(calculatedinsections7.6.Basestationcontrollerand7.8. Radio Network Controller), units; ψ SDH C– Maximal operational capacity of SDH radio link, E1 (see formula No. 26). Question No. 125 Do you agree thatnumber of BSC/RNC-MSCor BSC/RNC-MGWsections is calculated according to the formula No. 104? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Total number of SDH links (NSDH, units) is calculated according to the following formula: sec SDH BSC t m BR SDH N P N N × × × · α (105) 129 Where: NBR– Number of BSCs and RNCs (calculated in sections7.6. Base Station Controllerand 7.8. Radio Network Controller, units; t m P– Share of transmission covered by microwave links, %; αBSC – Average number of BSC sites per link (SDH radio links), units; sec PDH N – Number of BSC/RNC-MSC or BSC/RNC-MGW sections to meet capacity requirements, units. If NSDH is not an integer number, it is rounded to integer. Question No. 126 Do you agree that total number of SDH links is calculated according to the formula No. 105? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: There is the assumption adopted that the average number of BSC sites per transmission line is two. Question No. 127 Do you agree with the assumption that the average number of BSC sites per transmission line (SDH radio links) is two? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 130 Comments and suggestions: Alternative technology for transporting data in BSC/RNC – MSC or BSC/RNC – MGW hierarchy level is leased lines. Kilometres as additional measure besides pieces of leased lines are calculated, as thecosts of leasedlines increasetogether withincreasing distancebetween BSC/RNC and MSC or MGW. Numberof leasedlinesBSC/RNC-MSCorBSC/RNC-MGW( l MGW MSC BSC N / − , units)iscalculated according to the following formula: t L BR l MGW MSC BSC P N N × · − / (106) Where: NBR – Number of BSCs and RNCs, units; t L P– Share of transmission covered by leased lines, %. Question No. 128 Doyouagreethat number of leasedlinesBSC/RNC-MSCor BSC/RNC-MGWiscalculated according to the formula No. 106? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 131 Comments and suggestions: Total length of leased lines in BSC/RNC – MSC or BSC/RNC - MGW (LBSC-MSC/MGW, km) is calculated according to the following formula: l MGW MSC BSC l MGW MSC BSC MGW MSC BSC N L / / / − − − × · α (107) Where: l MGW MSC BSC N / − – Number of leased lines BSC/RNC-MSC or BSC/RNC-MGW, units; l MGW MSC BSC / − α– Average distance of leased line between BSC/RNC and MSC or MGW, km. Question No. 129 Doyouagreethat total lengthof leasedlinesinBSC/RNC–MSCor BSC/RNC–MGWis calculated according to the formula No. 107? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Averagedistanceof leasedlinebetweenBSC/RNCandMSCor MGW( l MGW MSC BSC / − α , km) is calculated according to the following formula: 132 2 / R l MGW MSC BSC · − α (108) Where: R – Radial distance of hexagon, km. The area of hexagon equals to Area of Republic of Lithuania divided by the number of MSC or MGW. l MGW MSC BSC / − αis shown in the figure 7. Figure 7. Average distance between BSC and MSC/MGW. Further algorithm how l MGW MSC BSC / − αis calculated is provided below. 2 1 2 · S S , 2 ) ( 2 3 3 2 3 3 2 / 2 · × × − l MGW MSC BSC R α , 2 / R l MGW MSC BSC · − α . Where: S1 – Area of bigger hexagon, km 2 ; S2 – Area of smaller hexagon, km 2 . Question No. 130 Doyouagreethat averagedistanceof leasedlinesBSC/RNC-MSCor BSC/RNC-MGWis calculated according to the formula No. 108? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. R S 1 S 2 MSC or MGW BSC l M G W M S C B S C / − α 133 Comments and suggestions: In MSC-MSC or MGW – MGW hierarchy level two types of measure of leased lines are calculated as well. Number of leased lines MSC-MSC or MGW-MGW ( l MGW MGW MSC MSC N − − / , units), assuming each MSC/MGW is connected with each of the rest of MSC/MGW, is calculated according to the following formula: ) 1 ( / / / − × · − − MGW MSC MGW MSC l MGW MGW MSC MSC BU BU N (109) Where: BUMSC / MGW – Number of MSC/MGW (see formula No. 68 or 83), units. Question No. 131 Do you agreethat number of leased lines MSC-MSC or MGW-MGW is calculated according to the formula No. 109? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 134 Total length of leased lines MSC-MSCor MGW-MGW(LMSC-MSC/MGW-MGW, units) is calculated according to the following formula: l MGW MGW MSC MSC l MGW MGW MSC MSC MGW MGW MSC MSC N L − − − − − − × · / / / α (110) Where: l MGW MGW MSC MSC N − − / – Number of leased lines MSC/MSS/MGW-MSC/MSS/MGW, units; l MGW MGW MSC MSC − − / α– Average distance of leased lines between MSCs/MGWs, km. Question No. 132 Do you agree that total length of leased lines MSC-MSC or MGW-MGW is calculated according to the formula No. 110? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Averagedistanceof leasedlinesbetweenMSCs/MGWs( l MGW MGW MSC MSC − − / α , km) iscalculated according to the following formula: Where: RMSC/MGW – Radial distance of hexagon, km The area of hexagon is equal to area of Republic of Lithuania. Assumption is adopted that area of Republic of Lithuania is one hexagon. Question No. 133 Do you agreethat average distance of leased lines in MSC-MSC or MGW-MGW is calculated according to the formula No. 111? Yes No 2 / / MGW MSC l MGW MGW MSC MSC R · − − α (1) 135 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Stand-alone transmission radio link: tower and site preparation As total number of PDH and SDH links is calculated, it is assumed that additional (to traffic and coverage) towers and sites are needed for transmission. These radio links are further referred as stand-alone transmission radio links Totalnumber of stand-alone transmission radio link ( t A S N − , units) is calculated according to the following formula: A S C A S B t A S N N N − − − + · (111) Where: A S B N − – Number of stand-alone microwave sites in backhaul transmission, units; A S C N − – Number of stand-alone microwave sites in core transmission, units. Question No. 134 Doyouagreethatnumber of stand-alonetransmissionradiolinkiscalculatedaccordingto formula No. 112? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 136 Comments and suggestions: A S B N − is calculated according to the following formulas: PDH A S PDH A S B P N N − − × · (112) ∑ · i PDH i PDH N N (113) Where: N PDH – Total number of PDH radio links in BTS/NodeB–BSC/RNC transmission, units; PDH A S P − – Percent of stand-alone PDH radio links, %; PDH i N– 2 Mbit/s, 8 Mbit/s, 16 Mbit/s, 32 Mbit/s PDH radio links. Question No. 135 Do you agree that number of stand-alone microwave sites in backhaul transmission is calculated according to formulas No. 113 and 114? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 137 A S C N − is calculated according to the following formula: SDH A S SDH A S C P N N − − × · (114) Where: NSDH – Total number of SDH radio links (calculated in formula No. 105), units; SDH A S P − – Percent of stand-alone SDH radio links, %. Question No. 136 Do you agree that number of stand-alone microwave sites in core SDH transmission is calculated according to formula No. 115? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 138 2. Network valuation Cost annualization All mobile network elements identified during network dimensioning are revalued at Gross Replacement Cost (GRC). Onthebasisof GRCvalueitsannual CAPEXcost isbeingfurther calculated. InBU-LRAICmodel therearefour alternativemethodsthat areusedtocalculate annual CAPEX costs: Straight-line method; Annuity method; Tilted Annuity method; Economic depreciation. Algorithms to calculate annual CAPEX cost using straight-line, annuity and tilted annuity methods are described in the following sections. Economicdepreciationisamethodtocalculateannual costsbasedonaforecastedrevenue distribution during the useful asset lifetime. This is the main reason why this method is favoured in theory.On the other hand, results from this method highly depend on revenue forecasts which, having in mind dynamic nature of telecommunications market, may be subjective and disputable. Consequently, in current BU-LRAIC model the use of economic depreciation method is excluded from modelling scope. Straight-line method Theannual CAPEXcostsunder straight-linemethodarecalculatedaccordingtothefollowing formula: ROI HG CD C + − · (115) Where: • l GRC CD · - current depreciation (l– usefullife of an asset 1 ; GRC –gross replacement cost of an asset); • index GRC GBV NBV HG × · , holding gain; • WACC GRC GBV NBV ROI × · - cost of capital; • Index - price index change; 139 • NBV – net book value; • GBV – gross book value; • WACC - weighted average cost of capital. Annuity method The annual CAPEX costs under annuity method are calculated according to the following formula: ( ) l WACC WACC GRC C , _ ¸ ¸ + − · 1 1 1 (116) Tilted annuity method The annualCAPEX costs undertiltedannuitymethodarecalculated according to the following formula: ( ) l WACC index index WACC GRC C , _ ¸ ¸ + + − − · 1 1 1 (117) Straight-linemethodwill beusedasamainmethodtocalculateannual CAPEXcostsdueto simplicity and consistency with themost commonly adopted accounting methodin financial accounts. Although the model will have a possibility to calculate annual CAPEX using the other two methods. Question No. 137 Do you agree that annual CAPEX costs are calculated according to the straight-line method? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 140 2.1. Mark-ups BU-LRAIC model includes the common and joint cost (network or other related) OPEX and CAPEX costs as a percentage of the network costs.In current BU-LRAIC model following mark-ups are calculated: Table 13. Mark-ups in BU-LRAIC modelling Parameter name Activities and equipments included Mark ups on GRC (joint network costs) Mark-ups of operational costs on network cost Site infrastructure Operational costs of planning, management, on —site visits, inspections, configuration and maintenance works, for particular network elements. BSS infrastructure Transmission MSC/MGW and other networks Mark-ups of network management system on network costs BSS infrastructure CAPEX of network management system equipment. Transmission MSC/MGW and other networks Mark-ups on operational costs (Overheads) Mark-ups of administration and support operational cost Total network infrastructureOperational cost of general administration, finance, human resources, information technology management and other administration and support activities (salaries, materials, services). Mark-ups of administration and support capital cost Total network infrastructure CAPEX of general administration, finance, human resources, information technology management and other administration and support activities (buildings, vehicles, computers, etc.). Detailed mark-ups to cover common costs are provided in table 14. NC 1 NC 2 NC 3 NC n NC n volumes NC n unit costs Service usage Service costs 141 Table 14. Mark-ups to cover common costs Mark-ups of operational costs on network cost Mark-ups of network management system on network co Mark-ups of administration and support operational cost Mark-ups of administration and support capital cost Site All sub- components Site infrastructure (% on HCC GRC value) - Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) BTS All sub- components BSS infrastructure (% on HCC GRC value) BSS infrastructure (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) Node B All sub- components BSS infrastructure (% on HCC GRC value) BSS infrastructure (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) PDH/SDH radio link All sub- components Transmission (% on HCC GRC value) Transmission (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) BSC/RNC All sub- components BSS infrastructure (% on HCC GRC value) BSS infrastructure (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) MSC/MGW All sub- components MSC/MGW and other network (% on HCC GRC value) MSC/MGW and other network (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) Network functionality All sub- components MSC/MGW and other network (% on HCC GRC value) MSC/MGW and other network (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) Data network All sub- components MSC/MGW and other network (% on HCC GRC value) MSC/MGW and other network (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) SMSC/MMSC All sub- components MSC/MGW and other network (% on HCC GRC value) MSC/MGW and other network (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) Other Network All sub- components (network-wide) MSC/MGW and other network (% on HCC GRC value) MSC/MGW and other network (% on HCC GRC value) Total network infrastructure (% on network OPEX) Total network infrastructure (% on network OPEX) NC 1 NC 2 NC 3 NC n NC n volumes NC n unit costs Service usage Service costs 142 Service cost calculation After major costs with the help of engineering model are established, service cost calculation stage follows. The flow in figure 8 and explanation of processes are provided below. As the figure 8shows, after network elements are established, HCCs are allocated to NCs (see section9.2HCCallocationtoNC). Further total NetworkComponentscostsarecalculatedby summing appropriate HCCs. Total Network Components costs are divided by service volumes and NetworkComponent unit costsarecalculated. AndfinallyNetworkComponent unit costsare multiplied by service usage factor and service costs are calculated (see table 18. Service matrix). Figure 8. Service cost calclation flow Homogeneous cost categories allocation to Network Components Essentialpart of LRAIC methodology is allocation of Homogenous Cost Categories on Network Components. NetworkComponentsrepresentslogical elementsthat arefunctionallyintegrated and from combining which any services may be established. An example of Network Component is logical meaning of BTS which includes annual cost of BTS’s along with all mark up costs resulting from maintenance, localization and supporting activities (e.g. administration, accounting etc.). HCCs to NC allocation matrix is presented in table 15. HCC 1 HCC 2 HCC 3 … HCC n NC 1 NC 2 NC 3 NC n NC n volumes ÷ ÷ ÷ NC n unit costs Service usage Service costs × × × × ÷ 143 Table 15. HCC allocation to NC. T o w e r a n d s i t e p r e p a r a t i o n B T S B S C N o d e B R N C M S C / M G W T X / B T S - B S C T X / B S C - M S C / / M G W T X / M S C - M S C o r M G W - M G W S M S C M M S C S G S N / G G S N E D G E H S D P A W A P H L R B i l l i n g Site All sub-components 100% BTS All sub-components 100% Node B All sub-components 100% PDH/SDH radio link SDH100% PDH 100% BSC/RNC BSC: base unit 100% BSC: BS TRX extension 100% TRC: transcoder base unit100% TRC: transcoder E1 100% RNC: basic units 100% RNC: extension units (Iub link) 100% RNC: extension units (sectors) 100% RNC: extension units (sites)100% MSC All sub-components 100% Network functionality SFH: soft handover (network) 100% SFH: (MSS extension) 100% SFH: (RNC extension) 100% SFH: (Node B extension) 100% GSM/DCS: control (BSC extension) 100% GSM/DCS: control (MSC extension) 100% GSM/DCS: control (BSC extension) 100% GSM/DCS: control (BTS extension) 100% Data network EDGE: data transfer (network-wide) 100 EDGE: data transfer (MSC extension) 100 % EDGE: data transfer (BSC extension) 100 EDGE: data transfer (BTS extension) 100 HSDPA: data transfer (network-wide) 100 HSDPA: data transfer (MSS extension) 100 HSDPA: data transfer (RNC extension) 100 HSDPA: data transfer (NodeB extension) 100 PCU: base unit 100% PCU: extension units (Gb link) 100% SGSN: base unit 100% SGSN: processing extension 100% GGSN: basic unit and licence 100% WAP: gateway 100% SMSC/MMSC SMSC: base unit 100 SMSC: extension 100 MMSC: base unit 100 MMSC: extension 100 Other Network SSP: service switching point (network-wide) 100% SCP: service control point - base unit (pre-paid related) 100% SCP: extension – subscribers 100% SCP: extension – tps 100% VMS: base unit 100% VMS: extension 100% 144 Table 15. HCC allocation to NC. T o w e r a n d s i t e p r e p a r a t i o n B T S B S C N o d e B R N C M S C / M G W T X / B T S - B S C T X / B S C - M S C / / M G W T X / M S C - M S C o r M G W - M G W S M S C M M S C S G S N / G G S N E D G E H S D P A W A P H L R B i l l i n g T o w e r a n d s i t e p r e p a r a t i o n B T S B S C N o d e B R N C M S C / M G W T X / B T S - B S C T X / B S C - M S C / / M G W T X / M S C - M S C o r M G W - M G W S M S C M M S C S G S N / G G S N E D G E H S D P A W A P H L R B i l l i n g HLR: base unit 100% HLR: extension 100% Billing IC hardware and software 100% License and frequency fee GSM 900 MHz 100% GSM 1800 MHz 100% UMTS 100% Leased Line Leased Lines BSC-MSC or BSC-MGW (units) 100% Leased Lines BSC-MSC or BSC-MGW (km) 100% Leased Lines MSC- MSC or MGW-MGW (units) 100% Leased Lines MSC- MSC or MGW-MGW (km) 100% 145 2.2. Network Component average unit cost After derivingtotal costs of eachNetwork Component averageunit costsof thoseNetwork Components are derived. Unit costs are derived by dividing total cost of each Network Component by yearly traffic utilizing that Network Component as formula shows: Volume TNCC UC · (118) Where: TNCC – Total Network Component costs, Lt; Volume–TrafficutilizingappropriateNetworkComponent. Below, table16isprovidedwhich explains how appropriate volume is calculated. Table 16. Traffic utilizing Network Components. Network Component Unit Traffic included Tower and site preparation Weighted service volumes in equivalent minutes Voice traffic (minutes of use) Video traffic (minutes of use) SMS traffic (pieces) MMS traffic (pieces) Circuit data traffic (minutes of use Packet data traffic (Mbytes) Voice traffic (call attempts) Video traffic (call attempts) BTS Weighted service volumes in equivalent minutes Voice traffic (minutes of use) SMS traffic (pieces) MMS traffic (pieces) Circuit data traffic (minutes of use Packet data traffic (Mbytes): o Data up-link (GSM subscribers) o Data down-link (GSM subscribers) 146 Network Component Unit Traffic included BSC Weighted service volumes in equivalent minutes Voice traffic (minutes of use) Video traffic (minutes of use) SMS traffic (pieces) MMS traffic (pieces) Circuit data traffic (minutes of use Packet data traffic (Mbytes): o Up-link (GSM subscribers) o Down-link (GSM subscribers) Node B Weighted service volumes Packet data traffic (Mbytes): o Up-link (UMTS subscribers) o Down-link (UMTS subscribers) RNCWeighted service volumesPacket data traffic (Mbytes): o Up-link (UMTS subscribers) o Down-link (UMTS subscribers) MSC/MGW Weighted service volumes in equivalent minutes Voice traffic (minutes of use) Video traffic (minutes of use) TX / BTS-BSC Weighted service volumes in equivalent minutes Voice traffic (minutes of use) Video traffic (minutes of use) SMS traffic (pieces) MMS traffic (pieces) Circuit data traffic (minutes of use Packet data traffic (Mbytes) TX / BSC-MSC/MGW Weighted service volumes in equivalent minutes Voice traffic (minutes of use) Video traffic (minutes of use) SMS traffic (pieces) MMS traffic (pieces) Circuit data traffic (minutes of use Packet data traffic (Mbytes) 147 Network Component Unit Traffic included TX / MSC-MSC or MGW/MGW Weighted service volumes in equivalent minutes Voice traffic (minutes of use) Video traffic (minutes of use) SMS traffic (pieces) MMS traffic (pieces) Circuit data traffic (minutes of use Packet data traffic (Mbytes) SMSC Weighted service volumes SMS traffic (pieces) MMSC Weighted service volumes MMS traffic (pieces) SGSN / GGSN Weighted service volumes Packet data traffic (Mbytes) EDGE Weighted service volumes 30% of packet data traffic (Mbytes) in GSM network: o Year total up-link (GSM subscribers) o Year total down-link (GSM subscribers) HSDPA Weighted service volumes 40% of UMTS network: o Year total up-link (UMTS subscribers) o Year total down-link (UMTS subscribers) WAP Weighted service volumes 10% of packet data traffic (Mbytes) in GSM network: o Year total up-link (GSM subscribers) o Year total down-link (GSM subscribers) HLR Number of SIM cardsYear end mobile subscribers (GSM post-paid) Year end mobile subscribers (GSM pre-paid) Year end mobile subscribers (UMTS post-paid) Year end mobile subscribers (UMTS pre-paid) 148 Network Component Unit Traffic included Billing Weighted service volumes Voice traffic (call attempts): o Off-net o Incoming o Transit Data services (sessions) SMS (messages) MMS (messages) Question No. 138 DoyouagreewithtrafficutilizingNetworkComponentsasshownintable16Trafficutilizing Network Components? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 2.3. Service cost In order to calculate total service cost average service usage factors by each network component involved in a service are needed. Average service usage factors refer to the quantity of a particular networkcomponent involvedinaservice(e.g. averagenumberof basestations, switchesand transmission links involved in termination service). Service matrix with service usage factors is provided in table 17. 149 Table 17. Service matrix C o v e r a g e B T S B S C N o d e B R N C M S C / M G W T X / B T S - B S C T X / B S C - M S C / M G W T X / M S C - M S C / M G W - M G W S M S C M M S C S G S N / G G S N E D G E H S D P A W A P H L R B i l l i n g On-net call fR fR fR - - fR fR fR fR-1 - - - - - - - 60/αCD Call origination fR fR fR - - fR fR fR fR-1 - - - - - - - 60/αCD Call termination fR fR fR - - fR fR fR fR-1 - - - - - - - 60/αCD WAP data fR*fC fR*fC fR*fC - - - fR*fC fR*fC - - - fR*fC - - fR*fC - 1/ρS GPRS data fR*fC fR*fC fR*fC - - - fR*fC fR*fC - - - fR*fC - - - - 1/ρS EDGE data fR*fC fR*fC fR*fC - - - fR*fC fR*fC - - - fR*fC fR*fC - - - 1/ρS UMTS data fR*fC - - 1 1 - fR*fC fR*fC - - - fR*fC - - - - 1/ρS HSDPA data fR*fC - - 1 1 - fR*fC fR*fC - - - fR*fC - 1 - - 1/ρS CSD data fR fR fR - - fR fR fR fR-1 - - - - - - - 1/ρS HSCSD data fR*αH fR*αH fR*αH - - fR*αH fR*αH fR*αH (fR-1)* αH - - - - - - - 1/ρS SMS termination fR fR fR - - fR fR fR - 1 - - - - - - 1 MMS termination fR fR fR - - - fR fR - - 1 Lmms/10 6 - - - - 1 Where: fR – Appropriate routing factor (Network element routing factors are provided in section 6.3 Service demand conversion); fc – Appropriate conversion factor (Network element conversion factors are provided in section 6.3 Service demand conversion); αH - Average number of channels used for HSCDS is adopted as assumption and equals to two; Lmms - Average MMS length, bytes; 150 αCD – Average call duration, seconds; ρS – Average bit rate of session 151 Question No. 139 Do you agree that average number of channels used for HSCDS (αH) is two? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Question No. 140 Doyouagreewithaverageserviceusagefactorsbyeachnetworkcomponent calculation principles provided in table 17? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: When the average routes of particular types of services are established, service cost (SC) of any service is calculated according to the following formula: ∑ · × · n i i usei UC f SC 1 α (119) Where: n – From 1 to 14 number of Network Component; α usei f– Average service usage factor; UCi – Unit Network Component cost, Lt. Question No. 141 Do you agree service costs are calculated according to formula No. 120? Yes No 152 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: 153 Annex 1. Second sub-model: point of interconnection related service cost calculation In this annex, principles of second sub-model are provided. Annex comprises definitions of point of interconnection (POI), providing capacity for point of interconnection services and costs related to those services. The scheme of POI is provided below. POI Figure 9. POI scheme In table 18, definitions of second sub-model services are provided. Table 18. Service definitions. Service name Service definitionMeasure Point of interconnection Providing geographically defined location, equipment and other associated services where mobile networks of the same or another entity are connected physically or logically to enable mobile network service recipients of one entity to use interconnection and/or the services provided by the connections with the other entity‘s service recipients including all the entities with the access to respective networks. Physical connection Network 1 Network 2 Modeled POI costs 154 Providing capacity for point of interconnection Providing capacity of point of interconnection equipment, telephone switch access capacity (allocated at the point of interconnection) and other associated services enabling call exchange between the interconnected parties. 2 Mbit/s link POI service one-off costs POI one-off costs are related to the following one-off activities: receiving and proceeding of order, installation of transmission equipment, cross-connection of cables (on DDF and ODF), setting link on a switch and setting billing. Detailed description of one-off activities required for POI service is presented in the following table. Table 19. POI service related one-off activities. Activity Man- hours Explanation Receiving and proceeding order A hr It is assumed that receiving and proceeding of POI order is not day-to-day procedure, it requires to co-ordinate a wide range of activities – ordering installation of additional transmission equipment, ordering cross-connections, ordering set-up on switch, ordering changes in billing system. Installation of transmission equipment B hr It has to be noted that cost of installation is included in GRC of transmission devices and cost of supervising and receipt of installation work is included in mark-up for operation and maintenance. Therefore in the cost of IC link installation only additional administrative resources related to contact the supplier and ordering transmission devices are to be considered if any. Setting link on switch, link tests D hr Setting and testing link on a switch. Setting billingE hr Setting billing. Total F hr Question No. 142 Do you agree that all POI one-off costs are related to the following one-off activities described in table 19: receiving and proceeding of order, installation of transmission equipment, cross- connection of cables (on DDF and ODF), setting link on a switch and setting billing? Yes No 155 If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: POI service one-off costs ( POI CO ) are calculated according to the following formula: MH off POI t CO α × · (120) Where: toff - Total time required to one-off activities (listed in table 19) per one POI, man-hours; αMH – Average activity man-hour costs (of required qualification), currency. Question No. 143 Do you agree that POI one-off costs are calculated according to the formula No. 121? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: POI service periodical costs POI service periodicalcosts include both cost related to network equipmentand cost related to periodical POI-specific activities. While calculating the equipment related cost for POI the following STM-1 equipment is required: 156 1. One STM-1 node (transmission node equipment); 2. One STM-1 optical interface (transmission node equipment); 3. One 32x2 Mbit/s tributary card; 4. 10 m of cable. Question No. 144 DoyouagreethatPOI periodical equipment costsarerelatedtothefollowingtransmission equipment: one STM-1, one STM-1 optical interface, one 32x2 Mbit/s tributary card and 10 m of cable? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: The cost of this service should represent incurred capital cost (CAPEX) together with mark-ups of: 1. operational costs (OPEX) on network cost; 2. network management system (CAPEX); 3. administration and support (OPEX and CAPEX). POI periodical equipment related annual costs are calculated according to the same principles and using the same mark-ups as described for transmission in section 8. Network valuation. Question No. 145 Do you agree that POI periodical equipment related annual costs are calculated according to the sameprinciples andusingthesamemark-upsasdescribedfor transmissioninsection8. Network valuation? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 157 Comments and suggestions: Theutilizationratesfortransmissionequipment shouldcorrespondtoanaveragenumber of 2Mbit/s circuits available per STM-1 link. It is assumed, that STM-1 at POI comprises of average 44 2Mbit/s circuits (operational allowance equal to 70%, assuming 63 circuits in one STM-1 node) and consequently annual POI equipment related annual costs per one POI (CCPOI) are calculated using the following formula: 44 POI POI CE CC · (121) Where: POI CE - POI periodical equipment related annual costs, currency. Question No. 146 Doyouagreethatannual POI equipment relatedannual costsper onePOI arecalculated according to the formula No. 122? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Providing capacity for POI service one-off costs 158 Providingcapacityfor POI serviceone-off costsarerelatedtothefollowingone-off activities: receiving and proceeding of order, setting link on a switch and link tests. Detailed description of one-off activities required for providing capacity for POI service is presented in the following table. If the order is placed together with a POI order, no additional one-off costs for providing capacity in POI should be incurred – these costs are only incurred for additional capacity orders. Table 20. Providing capacity for POI service related one-off activities. Activity Man- hours Explanation Receiving and proceeding order A hr It is assumed that receiving and proceeding of POI order is not day-to-day procedure, it requires to co-ordinate a wide range of activities – ordering installation of additional transmission equipment, ordering cross-connections, ordering set-up on switch, ordering changes in billing system Installation of transmission equipment B hr It has to be noted that cost of installation is included in GRC of transmission devices and cost of supervising and receipt of installation work is included in mark-up for operation and maintenance. Therefore in the cost of IC link installation only additional administrative resources related to contact the supplier and ordering transmission devices are to be considered if any. Setting link on switch and link tests C hr Setting link on a switch and link tests. Total D hr Question No. 147 Do you agree thatproviding capacity for POI service one-off costs are related to the following one-off activities described in table 20: receiving and proceeding of order, setting link on a switch and link tests? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. 159 Comments and suggestions: Providing capacity for POI service one-off costs ( capacity CO ) is calculated according to the following formula: MH c off capacity t CO α × · (122) Where: c off t - Total time required to one-off activities (listed in table 20) per one 2 Mbit/s link, man-hours; αMH – Average activity man-hour costs (of required qualification), currency. Question No. 148 Do you agree that providing capacity for POI service one-off costs are calculated according to the formula No. 123? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: Providing capacity for POI service periodical costs As utilization rates for transmission equipment should correspond to an average number of 2Mbit/s circuits available per STM-1 link, it is assumed, that providing capacity for POI service periodical costs are equal to POI service periodical costs. 160 Question No. 149 Do you agree with assumption that providing capacity for POI service periodical costs are equal to POI service periodical costs? Yes No If you answered “No”, comment and provide solutions, leading by instruction set in the chapter “Request for expressing opinion”. Comments and suggestions: . 161 Annex 2. Preliminary questionnaire forms. Question table 1. Service volumes (actual not billed traffic) Service Type Unit Volumes 200 6 2007 2008 2009 2010 Number of SIM cards (at year end) Year end mobile subscribers (GSM post-paid) min Year end mobile subscribers (GSM pre-paid) min Year end mobile subscribers (UMTS post-paid) min Year end mobile subscribers (UMTS pre-paid) min Voice traffic (minutes of use) Year total on-net minutes (to own mobile network) min Year total off-net minutes (to fixed networks, to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic) min Year total incoming minutes (from fixed networks, international networks and from other mobile networks, including MVNO‘s and inbound roaming traffic) min Year total transit minutes (traffic, which is neither originated and neither terminated in the own network, bridge traffic between different operators) min Video traffic (minutes of use) Year total on-net minutes (to own mobile network) min Year total off-net minutes (to fixed networks, to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic) min Year total incoming minutes (from fixed networks, international networks and from other mobile networks, including MVNO‘s and inbound roaming traffic) min SMS traffic (pieces) Year total on-net SMS messages (to own mobile network) pieces Year total outgoing SMS messages (to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic) pieces Year total incoming SMS messages (from international networks and from other mobile networks, including MVNO‘s and inbound roaming traffic) pieces MMS traffic (pieces) Year total on-net MMS messages (to own mobile network) pieces Year total outgoing MMS messages (to international networks and to other mobile networks, including MVNO‘s and inbound roaming traffic) pieces Year total incoming MMS messages (from international networks and from other mobile networks, including MVNO‘s and inbound roaming traffic) pieces Circuit data traffic (minutes of use - single channel minutes) Year total HSCSD/CSD minutes minutes Packet data traffic (Mbytes) Year total up-link (GSM subscribers) Mbytes Year total down-link (GSM subscribers) Mbytes Year total up-link (UMTS subscribers – data) Mbytes Year total down-link (UMTS subscribers - data) Mbytes 162 Question table 2. Headroom allowance 163 Network element type Unit Base unit capacity if applicable Extension step capacity if applicable Maximal technical capacity (including possible extension) Design utilisation factor at planning stage if applicable TRX cards channels BTS - Macro cell equipment TRX BTS - Micro cell equipment TRX PDH radio link 2 Mb/s microwave link E1 PDH radio link 8 Mb/s microwave link E1 PDH radio link 16 Mb/s microwave link E1 PDH radio link 32 Mb/s microwave link E1 BSCTRX TRCE1 (A interface) MSC processor BHCA MSC VLR Subscribers MSC SS7 E1 MSC trunk port E1 SDH radio links (1+1) E1 SCP: service control point Subscribers SCP: service control point BH trans./sec. VMS Mailboxes HLRSubscribers SMSC BH SMS / sec. MMSC BH MMS / sec. NodeB - Macro cell equipment NodeB - Micro cell equipment RNC Mbit/s RNC sectors RNC NodeB sites MSC server BHCA MGW processor BHCA MGW trunk port BHCA PCUMbit/s SGSN BH packet / sec. Question table 3. Network statistics Ref Parameter Unit Values Coverage parameters Total area covered km2 Proportion of urban area % Proportion of suburban area % Proportion of rural area % UMTS coverage urban area % suburban area % rural area % GMS coverage urban area % suburban area % rural area % HSDPA presence in UMTS network urban area 1/0 suburban area 1/0 rural area 1/0 EDGE presence in GSM network urban area 1/0 suburban area 1/0 rural area 1/0 Single band GSM presence urban area 1/0 suburban area 1/0 rural area 1/0 Dual band GSM presence 164 Ref Parameter Unit Values urban area 1/0 suburban area 1/0 rural area 1/0 UMTS traffic Geographical UMTS traffic mapping 100% Urban area Suburban area Rural area Proportion of urban UMTS traffic serviced by different cell types 100% Proportion of urban traffic serviced by macro cells Proportion of urban traffic serviced by micro cells Proportion of urban traffic serviced by pico cells Proportion of suburban UMTS traffic serviced by different cell types 100% Proportion of suburban traffic serviced by macro cells Proportion of suburban traffic serviced by micro cells Proportion of suburban traffic serviced by pico cells GSM traffic Geographical traffic mapping 100% Urban area Suburban area Rural area Proportion of urban traffic serviced by different cell types 100% Proportion of urban traffic serviced by macro cells Proportion of urban traffic serviced by micro cells Proportion of urban traffic serviced by pico cells Proportion of suburban traffic serviced by different cell types 100% Proportion of suburban traffic serviced by macro cells Proportion of suburban traffic serviced by micro cells Proportion of suburban traffic serviced by pico cells Node B capacity - combined Spectrum assumptions 1900 MHz - Amount of spectrum (2 x 5 MHz) Cell range Macro cell - urban area km 165 Ref Parameter Unit Values Macro cell - suburban area km Macro cell - rural area km NodeB - data traffic capacity Sector capacity Macro cell - urban area kbit/s Macro cell - suburban area kbit/s Macro cell - rural area kbit/s Micro cell kbit/s Pico cell kbit/s Sector capacity - HSDPA Macro cell - urban area kbit/s Macro cell - suburban area kbit/s Macro cell - rural area kbit/s Micro cell kbit/s Pico cell kbit/s Radio link allowance Sector capacity allowance in BHT Macro cell Micro cell Pico cell UMTS sites configuration Macro cells - urban area Omni sectored 2 sectors 3 sectors Macro cells - suburban area Omni sectored 2 sectors 3 sectors Macro cells - rural area Omni sectored 2 sectors 3 sectors Average number of cells per site Micro cells 166 Ref Parameter Unit Values Pico cells BTS capacity Spectrum assumptions 900 MHz - Amount of spectrum (2 x MHz) 1800 MHz - Amount of spectrum (2 x MHz) 900 MHz - Sector Reuse factor 1800 MHz - Sector Reuse factor Bandwidth of TRX transceiver (MHz) Maximal cell range Macro cell - urban area Macro cell - suburban area Macro cell - rural area Physical sector capacity for GSM in [TRX] Macro cell sector capacity Micro cell sector capacity Pico cell sector capacity GSM sites configuration Percentage proportion of cells split between the number of sectors Macro cells - urban area 100% Omni sectored 2 sectors 3 sectors Macro cells - suburban area 100% Omni sectored 2 sectors 3 sectors Macro cells - rural area 100% 167 Ref Parameter Unit Values Omni sectored 2 sectors 3 sectors Number of sectors for micro and pico cell Micro cells Pico cells Transmission % of stand-alone PDH radio link sites as a ratio of stand-alone PDH radio link sites to total number of sites in a network % of stand-alone SDH radio link sites as a ratio of stand-alone SDH radio link sites to total number of sites in a network BTS-BSC logical layer PDH radio link 2 Mb/s microwave link PDH radio link 8 Mb/s microwave link PDH radio link 16 Mb/s microwave link PDH radio link 32 Mb/s microwave link average number of BTS / Node B sites per link (PDH radio links) BSC-MSC or BSC-MGW logical layer Share of transmission (split by capacity) 100% microwave links leased lines (incl. own lines) average number of BSC sites per link (SDH radio links) Hops per BSC should take into account some BSCs being far from MSC/MGWs, and some being co-sited Other 168 Ref Parameter Unit Values I N average IN transaction number per call of pre-paid subscriber (origination, on-net) 169 Question table 4. HCC data HCC name Unit Unit cost (LT) Unit cost (EUR) Useful life (years) Price index (network related) NBV/GBV A. Site 1 Macro cell: tower and site preparation units 2 Micro cell: site preparation units 3 Pico cell: site preparation units 4 Stand-alone transmission radio link: tower and site preparation units B. BTS – GSM 5 Macro cell: equipment (omni sector) units 6 Macro cell: equipment (2 sector) units 7 Macro cell: equipment (3 sector) units 8 Micro cell: equipment units 9 Pico cell: equipment units 10 Macro cell: TRXs units 11 Micro cell: TRXs units 12 Pico cell: TRXs units C. NodeB – UMTS 13 Macro cell: equipment (omni sector) units 14 Macro cell: equipment (2 sector) units 15 Macro cell: equipment (3 sector) units 16 Micro cell: equipment units 17 Pico cell: equipment units D. PDH/SDH Radio link 18 PDH radio link 2 Mb/s microwave link units 19 PDH radio link 8 Mb/s microwave link units 20 PDH radio link 16 Mb/s microwave link units 21 PDH radio link 32 Mb/s microwave link units 22 SDH radio link STM-1 microwave link (1+1) units E. BSC/RNC 23 BSC: base unit units 24 BSC: BS TRX extension units 25 TRC: transcoder base unit units 26 TRC: transcoder E1 (A interface) extension units 27 RNC: basic units units 28 RNC: extension units (Iub link) units 29 RNC: extension units (sectors) units 30 RNC: extension units (sites) units F. MSC 31 MSC: basic unit and software units 170 HCC name Unit Unit cost (LT) Unit cost (EUR) Useful life (years) Price index (network related) NBV/GBV 32 MSC: processor extension units 33 MSC: VLR, EIR extension units 34 MSC: SS7 extension units 35 MSC: trunk port extension units 36 MSC: I/O peripherals units 37 MSS: basic unit and software units 38 MSS: processor extension units 39 MGW: basic unit and software units 40 MGW: processor extension units 41 MGW: trunk port extension units G. Network Functionality 42 SFH: soft handover (network-wide) units 43 SFH: soft handover (MSS extension) 44 SFH: soft handover (RNC extension) units 45 SFH: soft handover (NodeB extension) units 46 GSM/DCS: control (network-wide) units 47 GSM/DCS: control (MSC extension) units 48 GSM/DCS: control (BSC extension) units 49 GSM/DCS: control (BTS extension) units H. Data Network 50 EDGE: data transfer (network-wide) units 51 EDGE: data transfer (MSC extension) units 52 EDGE: data transfer (BSC extension) units 53 EDGE: data transfer (BTS extension) units 54 HSDPA: data transfer (network-wide) units 55 HSDPA: data transfer (MSS extension) 56 HSDPA: data transfer (RNC extension) units 57 HSDPA: data transfer (NodeB extension) units 58 PCU: base unit units 59 PCU: extension units (Gb link) units 60 SGSN: base unit units 61 SGSN: processing extension units 62 GGSN: basic unit and licence units 63 WAP: gateway units I. SMSC/MMSC 64 SMSC: base unit units 65 SMSC: extension units 66 MMSC: base unit units 67 MMSC: extension units 171 HCC name Unit Unit cost (LT) Unit cost (EUR) Useful life (years) Price index (network related) NBV/GBV J. Other Network 68 SSP: service switching point (network-wide) units 69 SCP: service control point - base unit (pre-paid related) units 70 SCP: extension - subscribers units 71 SCP: extension - tps units 72 VMS: base unit units 73 VMS: extension units 74 HLR: base unit units 75 HLR: extension units 76 Billing IC hardware and software units K. License and frequency fee 77 Concession right - GSM 900 MHz (total value) units 78 Concession right - GSM 1800 MHz (total value) units 79 Concession right - UMTS (total value) units L. Leased Line 80 Leased Lines BSC-MSC or BSC-MGW units 81 Leased Lines BSC-MSC or BSC-MGW km 82 Leased Lines MSC-MSC or MGW-MGW units 83 Leased Lines MSC-MSC or MGW-MGW km 172 Cost allocation to services Question table 5. Mark-ups Parameter name Unit Value Mark-ups on GRC 2006 2007 2008 Mark-ups of operational costs on network cost Site infrastructure % BSS infrastructure % Transmission % MSC/MGW and other network % Mark-ups of network management system on network cost BSS infrastructure % Transmission % MSC/MGW and other network % Mark-ups on operational cost Mark-ups of administration and support operational cost Total network infrastructure % Mark-ups of administration and support capital cost Total network infrastructure % Question table 6. Service statistics Data conversion factorsUnit Values per total GPRS data traffic in GSM network % GPRS WAP traffic in GSM network % EDGE data traffic in GSM network % UMTS data traffic in UMTS network % HSDPA data traffic in UMTS network % 173