A Techno-Economic Framework for Installing Broadband Networks in Rural and Remote Areas

Abstract

Expanding broadband services represents a significant challenge for broadband operators, especially in light of the requirements related to the total cost of ownership of these technologies. In the last few years, this expansion has advanced significantly, but it still represents a challenge that must be overcome since there is a need to provide low-cost services to rural communities in remote areas. Issues related to geographical location, the low income of residents, and the lack of public infrastructural facilities lead to a disadvantageous relationship between the potential revenue for operators and the high costs of deploying infrastructure. Although there are several research endeavors in the literature aimed at addressing how connectivity can be provided, they do not discuss systems that take account of the specific features of these regions or that have adapted services and network applications to meet the needs of these communities. Thus, using dimensioning systems for the total cost of network ownership and taking into account capital and network operating expenses, this study establishes a technical and economic framework for the deployment of broadband networks in rural and remote areas. It also applies economic feasibility analysis techniques designed to assist decision making by interpreting the effects of any financial investment made and estimating the expected profits of the broadband operators. We also recommend the use of socioeconomic indicators to predict the potential social impact of this framework on the development of these regions. We employ a case study to demonstrate the operational features of the planned framework. Based on real data obtained from a municipality located in the Brazilian Amazon region, we show that it is possible to reduce the cost of subscribing to broadband services for end-users by reducing deployment costs and thus ensure that access to digital services can be equitably obtained.

Keywords

• Broadband services
• rural and remote areas
• total cost of ownership
• feasibility analysis