2014 1st International Conference on 5G for Ubiquitous Connectivity (5GU) Cost comparison of Licensed Shared Access (LSA) and MIMO scenarios for capacity growth in Finland Michail Katsigiannis, Arturo Basaure Department of Communications and Networking Aalto University, School of Electrical Engineering Helsinki, Finland {michail.katsigiannis, rturo.basaure}@aalto.fi Abstract-The high mobile data traic growth requires investments in radio access networks. Network capacity expansion can be achieved by increasing the number of base stations, increasing the network spectral eiciency and obtaining additional spectrum. This study assumes a constant number of base station to compare two potential future network deployment scenarios; the Licensed Shared Access scenario (LSA), which adds spectrum to the network and a Multi-Input and Multi Output (4x2 MIMO) antenna technology, which increases the network's spectral eficiency. Both deployment scenarios are studied for the urban regions in Finland. The purpose is to examine the spectrum availability and evaluate under which conditions LSA is more likely to be implemented in the Finnish market. With the assumptions taken, the results show that the LSA scenario provides more capacity but the MIMO scenario provides a more cost eicient alternative. The MIMO technology is preferable than a LSA deployment for mobile data traic growth rate less than 2.7. For larger growth rate (up to 3.5) the LSA scenario is a feasible solution either as independent or complementary technique. Keywords- Licensed Shared Access; MIMO; spectrum; mobile data rafic; techno-economics; costs; urban region; Finland I. INTRODUCTION Under the highly anticipated exponential growth in mobile data traffic, mobile network operators (MNOs) should deploy diferent strategies to attain higher level of eficiency in their networks. From a general perspective, MNOs can invest in upgrading their networks or may alternatively deploy emerging dynamic spectrum access (DSA) technologies to obtain additional spectrum capacity. This paper compares a next possible step for these two evolution paths. From one side, this study investigates the case of Licensed Shred Access (LSA), which is a mechanism which facilitates MNOs to obtain additional spare spectrum from other spectrum holders. On the other side, this paper studies the deployment of 4x2 MIMO (Multiple-Input and Multiple-Output) smrt antenna technology, which is likely to be deployed by MNOs in the near future to boost their network performance. Both deployment scenrios re studied for the case of Finland. The purpose of this paper is to evaluate whether Licensed Shred Access is worth being implemented. The paper performs a quantitative analysis for a Finnish MNO. Firstly it examines the spectrum availability and needs. Secondly, the cost of a LSA scenrio is compared to the deployment of 4x2 291 Marja Matinmiko VTT Technical Research Centre of Finland Oulu, Finland Marj a.Matinmikko@ vtt.fi MIMO smart antenna technology. In this way, the paper compares the efect of bringing additional spectrum to MNO's networks against increasing their spectral eficiency. The paper aims to answer to the following question: "under which conditions is LSA more likely to be implemented in he Finnish market?" To answer this research question, a cost model is developed to investigate the network cost over any data traffic growth in ner future for the urban regions in Finland. The future investments are based on the existing network infrastructure, assuming that the number of sites remains unchanged. The main outputs of the model are he capital and operating costs as well as the cost unit curves (average and marginal cost) which will provide the essential information for decision-making. This paper contributes to assess the potential beneits of two altenative solutions for attending the increasing demand of mobile markets in the short term. The paper investigates real cases for mobile operators, and provides useful information for decision making in network evolution. In concrete, this study explores the Finnish mrket, so that conclusions can be easily employed to other larger markets as well. The paper is outlined as follows: Section II discusses the spectrum availability and potential future allocated spectrum to a Finnish MNO, as well as the LSA concept. Section III describes the model. Section IV covers the results of the model. The paper is concluded in Section V. II. SPECTRUM AND LICENSED SHARED ACCESS (LSA) A. Spectrum Currently, the licensed bands allocated by the Finnish regulatory authority PICORA for mobile communications to provide national coverage add up to 555 MHz. The amount of spectrum which has been harmonized by the European Conference of Postal and Telecommunications Administrations (CEPT) is 1077 MHz, but it is not fully utilized by mobile communications industry. Table I presents the spectrum bands for International Mobile Telecommunications (IMT) in Europe and Finland determined by Intenational Telecommunication Unit (lTU), CEPT and PICORA [1-4]. In addition, the Table II shows the current and the potential future allocated spectrum in average for a Finnish MNO [3, 5]. The candidate band for potential use of LSA in Europe is at 2300 MHz. The total spectrum identified for IMT in this frequency band is 100 978-1-63190-055-6 © 2014 ICST DOl 10.4108/icst.5gu.2014.258050