Few matters are as contentious as the business model for millimeter wave communication, either in a mobile or fixed wireless deployment. The biggest concerns probably concern signal propagation, and the impact on business models.
Some think sheer reach will be an issue, while others might argue that the cost of infrastructure, relative to revenue, will prove sub-optimal.
The Mobile Experts model for 5G deployment estimates the cost of a 5G network and the potential revenue from new 5G services such as fixed wireless might be quite challenging. “There is simply not enough high-density demand for that,” Mobile Experts says.
In Korea and Japan, when mobile operators crossed a threshold of 0.02 GkM (traffic density about 20 Gbps/ km2), they started using small cells. When density reaches this threshold, it’s best to supplement the macro network with a small cell layer.
Put simply, if the network only needs coverage, macro is the answer. For dense capacity, small cells should be added. What happens when density increases by another 10X?
The simple-minded answer is that we will need 10X as many small cells. That is too expensive, Mobile Experts says.
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