Return on Investment (ROI) for Multi-Technology SON
7.1. Overview of SON Benefits
Explosive market penetration of smartphones and laptop computers with mobile broadband connections is creating a critical scenario in which traffic volumes carried by networks grow at a significant pace whereas Average Revenue Per User (ARPU) is reaching saturation. In such context, the Self-Organizing Networks (SON) management paradigm is proposed mainly as a mechanism to facilitate the delivery of mobile broadband services that are sustainable for wireless carriers from a financial perspective. The main benefits of SON are summarized in Figure 7.1.
As can be seen in Figure 7.1, Operational Expenditure (OPEX) savings heavily rely on automation, which is the main keyword associated with SON. However, as will be discussed later, not all automation initiatives result, by nature, in a financial benefit. This will only be the case if the task was originally being executed manually in the absence of SON. In other words, there are no implicit OPEX savings associated with the introduction of a new automated task. Other sources of OPEX savings come from energy efficiency and decreased need for leased resources (e.g. transmission lines), typically achieved by optimizing the utilization of the available capacity.
Another key benefit from SON is Capital Expenditure (CAPEX) savings, which can be achieved by means of a more accurate capacity planning process and ...