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This paper presents a techno-economic evaluationof combined VMTS and WLAN operator business case spanning years 2002-2011. The study is based on the work by the TONIC pmject [ I ] under the European Union IST (Informtlrion Society Technologies) programme 121. The study pmvides a framework to compare all the main factors affecting the UMTS operator's business case and evaluation of the WIAN profitability impact as complementary access technology. The example cases differ in country demographics and rollout plans relating to competition and demand situation and regulatory requirements.

This article outlines the economic feasibility of mobile operators that combine nationwide mobility with 3G networks and hot spot coverage with WLANS. WLANs are based on HIPERLAN/2 architecture and the UMTS network exploits WCDMA/FDD technology. The evaluated business scenarios are focused on two different deployment areas, in terms of demographic characteristics and mobile penetration: a large and a small European country. The business case .spans 2002 to 2011 with UMTS' roll-out year in 2002 and W1.AN'S in 2004 where demand is high. The demand for this UMTS-W~N roaming case is evaluated based on observations from Europe's current mobile market and its evolution. Usage scenarios of different service packages corresponding to both residential and business markets have been taken into account. Direct investments and operational costs as well as revenue streams from traffic have been calculated. The methodology and the tool developed in ACTS-TERA [1] and projects have been utilized for this case study. Economic conclusions have been derived, presented and discussed using key profitability factors. Profitability for all scenarios and business profiles has been calculated, presented and discussed. It includes a sensitivity analysis in order to identify, the major opportunities and threats, for specific" service sets as well as critical parameters and uncertainties. A wide audience from mobile operators and service providers to retail companies interested in entering the 3G market, can exploit this information.