Alternative Mobile Broadband Deployment in Countries with Low Spectrum Allocation and Low Fixed Line Penetration

The research work presented in this document deals with the problem of implementing high capacity mobile networks that are able to accommodate the ever increasing amounts of data traffic produced by mobile broadband users, given the dramatic expansion this service has experienced in the recent past due to the popularity of smartphones and tablets. Moreover, the analysis focuses in the feasibility of considering alternative deployment strategies that may render cost-efficient solutions while overcoming the challenges posed by the low amount of spectrum allocated to operators and the limited number of fixed telephone and internet lines available, which are characteristic of developing countries. In this context, an assessment in the scenario of the Telecommunications market in Ecuador is provided, for three specific strategies: network sharing, the use of secondary spectrum in TV white spaces, and offloading of traffic to local networks. The main factors considered are the economic situation, the penetration of fixed and mobile services, the regulatory environment, and the set up of the mobile operators in the market. Descriptions and comparisons with Chile and Sweden are included, as they present scenarios with higher levels of development, giving the opportunity to look at the way they have managed to improve the conditions in their markets and provide suggestions to allow Ecuador to follow their steps. The results show that network sharing could be feasible mostly in the way of passive sharing, given regulatory restrictions. Also, the introduction of at least one new operator could provide better conditions for this strategy. On the other hand, the use of secondary spectrum would be a great solution, but it may be hard to implement it due to regulatory delays and economic issues related to the potentially high costs mobile phones supporting cognitive radio technologies may have. Finally, offloading of traffic to local networks is possible, but limited to urban areas where the density of fixed internet and telephone lines may support the deployment of femtocells or Wi-Fi networks.