1 / 26

Business Model for Broadband Internet on the Train

This study explores technical solutions and develops a business case for implementing broadband internet on trains. The technical scenarios include combining incumbent networks, implementing a dedicated network, and utilizing satellite communication. The business model considers cost parameters, revenue schemes, and user adoption. Conclusions highlight the best solution, the need for variation in rollout schemes, and future enhancements.

jkarns
Download Presentation

Business Model for Broadband Internet on the Train

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Business Model for Broadband Internet on the Train Bart Lannoo, Jan Van Ooteghem, Daan Pareit, Tom Van Leeuwen, Didier Colle, Ingrid Moerman and Piet Demeester Ghent University - IBBT

  2. Outline • Introduction • Technical solutions • Business case • Conclusions

  3. Introduction virtual home, virtual office on the train

  4. User studies & Techno-economical evaluations Use cases, requirements & architecture Onboard communication Satellite communication Trackside communication Interworking IBBT TR@INS: TRAin IP Network Services Industrial partners Research groups

  5. Outline • Introduction • Technical solutions • Business case • Conclusions

  6. Technical scenarios

  7. Incumbent network • Combines as much different incumbent networks as needed: • Without new deployments if possible • Mobile networks (e.g. UMTS) • Additionally: bandwidth extended with a wireless network • Existing network: e.g., WiFi network in the railway stations • New network: only when current networks are inadequate • Case for the business model: • Case 1: UMTS + WiMAX • UMTS: until bandwidth requirements are exceeded UMTS: 900 kbps down, 384 kbps up (cf. 3 UMTS channels) • WiMAX: when UMTS network is not longer sufficient

  8. Dedicated network • Dedicated network installed along the tracks • WiMAX • Flash-OFDM • Disadvantage: large investments • Usually limited to the busiest passenger lines • Remaining lines: incumbent mobile networks (e.g. UMTS) • Two different cases: • Case2: WiMAX + UMTS • WiMAX: busiest lines from the beginning (extended if required) • UMTS: rest of the lines • Case 3: WiMAX • WiMAX along all lines from the beginning

  9. Satellite network • Satellite: main technology • Used as much as possible • Satellite requires LoS, extended with one or more gap fillers • Railway station: existing WiFi network • Urban areas: available mobile network • Tunnels: repeater technology or new dedicated network • Two different cases: • Case 4: two-way satellite • UMTS used as gap filler • Case 5: one-way satellite • UMTS used for return link and as gap filler

  10. Outline • Introduction • Technical solutions • Business case • Conclusions

  11. Business model

  12. Considered railway network in Belgium Most IC + IR trains equipped in 5 years

  13. Train types • “Normal train” e.g. I11 • “Unit” e.g. AM 96 Locomotive First and second class carriages Cab car Unit A Unit A Carriage Cab car Carriage Cab car

  14. Users • Adoption model • Based on Gompertz curve: • After 10 years: 1st class = 15%; 2nd class = 10%

  15. Cost parameters

  16. Operational costs compared to Total costs Dedicated bandwidth per user: e.g. 25 kbps  user experience: 1 Mbps (?)

  17. Revenue schemes • Ticket types • Prepaid cards per hour (e.g. hotspot service) • Monthly subscriptions • Ticket price • Dependent on offered service: €3.5 – €4 .5 (5 - 55 kbps) • Service of 30 kbps: Prepaid: €4 / Subscription: €20 • Two revenue scenarios • Both first and second class paying • First class free Internet, second class paying  Modal switch from 1st to 2nd class!!!

  18. NPV results: realistic Belgian train situation After 10 years, discount rate of 10%

  19. NPV results: trains with only one cab car After 10 years, discount rate of 10%

  20. Sensitivity analysis: discounted network costs After 10 years, discount rate of 10%

  21. Sensitivity analysis: NPV After 10 years, discount rate of 10%

  22. Sensitivity analysis: most influencing parameters NPV after 10 years, discount rate of 10% pos. %: increasing parameter value  increasing NPV neg. %: increasing parameter value  decreasing NPV

  23. Outline • Introduction • Technical solutions • Business case • Conclusions

  24. Conclusions • Best solution for Broadband Internet on the Train • Combined usage of different network technologies • From technical as well as economic perspective • Dense railway network • WiMAX: full deployment expensive, best combined with UMTS • Satellite: expensive technology for large railway network • UMTS: good in the beginning of the deployment + as back up technology

  25. Future work • Variation in roll out schemes • Dense railway net: few lines  all lines • TGV net • Other countries • Further enhancement of the model • User adoption • Cost model • Revenue model

  26. Personal details: Name: Surname: Company: Phone: E-mail: Jan Van Ooteghem Ghent University – IBBT +32 9 331 49 81 jan.vanooteghem@intec.ugent.be dariusz.rozanski@szczesliwice.net

More Related