Cost modeling of backhaul for mobile networks

Wireless heterogeneous networks (HetNets) based on small cells are a cost and energy efficient alternative to provide high capacity to the end users. On the other hand, the cost and energy consumption of backhaul network aggregating data traffic from a large number of base stations may limit the benefits brought by the use of small cell. In HetNet deployments it becomes thus essential to be able to assess the total cost of ownership (TCO) of the backhaul network. This paper presents for the first time a comprehensive cost evaluation methodology to compute the TCO of mobile backhaul networks. The presented model can be instrumental to identify the most critical cost drivers in the backhaul networks and to have a better understanding of the backhaul TCO dynamics when small cells are deployed. The proposed TCO model is then used in a case study where two technology options for the backhaul are considered, i.e., microwave and fiber. The results from the case study show how it is possible to identify the most critical cost factors, thus easing the way towards a cost efficient backhaul design strategy.