Mobile industry could avoid wasting $500+ million in 2011, says Arieso
Date: Fri, 02/18/2011 - 19:33 Source: Arieso press department
Calculations revealed by Arieso show the mobile industry globally could avoid wasting more than $500 million on new base station equipment in 2011. To date, operators have suffered from a lack of high quality data, compromising their capability to place base stations precisely where they will have most impact
Operators have been restricted to network measurement tools and techniques that do not provide granular, timely data on network performance. Without detailed information on congestion hotspots and coverage “holes”, locations for base stations are inevitably chosen that do not yield the intended performance. But with precision information, operators can accurately locate base stations to ensure that CAPEX will provide maximum return on their investment.
Operators are now deploying a large number of new base stations in direct response to the explosive growth in data usage. Arieso’s calculations combine data from ABI Research, that anticipate operators globally will deploy nearly 80,000  W-CDMA base stations in 2011, and its own data gathered from working with many tier one operators globally. In total, Arieso predicts that poorly placed base stations could result in $516 million of wasted CAPEX, from a predicted total base station investment of $5.6 billion in 2011.
“Every dollar counts. In an era when average revenues are declining and OPEX is rising, operators must ensure their CAPEX is spent as wisely as possible,” said Michael Flanagan, CTO of Arieso. “Intuition, inaccurate information, and guesswork simply do not suffice. Operators must adopt a new approach to network planning and optimisation that uses timely, accurate and precise data to make critical investment decisions.”
Finding the best location for base stations is much harder than it appears. The position of base stations relative to traffic density, and also relative to each other, is critical in order to provide the required coverage and manage interference.
However, attempting to position base stations with the limitations of existing tools and methodologies, such as high level OSS statistics and drive testing, can in extreme cases worsen network efficiency and user experience. Where this approach has been taken, operators have risked putting expensive base stations in locations that do not deliver the required performance.
Using actual customer usage data, Arieso monitors the real-world impact of different handsets in precise locations, and determines their effects on network performance. Operators can then use the data to efficiently manage their networks and deploy new infrastructure with surgical precision, for maximum ROI and to improve service quality for customers.