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Pricing, Incentives, Wireless, UMTS, Financial analysis, Cash flows, NPV,

In a wireless environment, the impairment of communication channels can affect significantly the performance of broadband wireless system. This paper presents an analytical model on the performance of a GSM/GPRS system with channel impairment. The model incorporates the interfering effects causing by the bit error rate of affected channels and the possibility of corrupted channels. Our model is based on a Markov-modulated Poisson Process (MMPP) used for traffic integration of voice and data in a GPRS system. With the effect of interference embedded in the model, the result would provide valuable realistic information for the design and implementation of such systems.