Mobile data traffic is expected to increase 13-fold from 2012 until 2017. Therefore, in order to support such traffic, mobile network operators are forced to increase network resources.
This results in significant Capital Expenditure (CAPEX) and Operational Expenditure (OPEX) increase, due to the fact that more or more powerful equipment needs to be deployed, which consequently increases overall network cost and electricity consumption.
Meanwhile, the Average Revenue Per User (ARPU) stays flat or even decreases over time, as the typical user gets more and more data-hungry but expects to pay less for data usage. As presented by Juniper, between 2014-2015) network cost may exceed revenues if no actions will be taken.
Thus, a solution which can maintain the network Total Cost of Ownership (TCO) at a reasonable level becomes of utter importance. Mobile C-RAN has the potential to lower the network cost and energy consumption.
The main goal of this paper is to present our approach of modeling Statistical Multiplexing Gain in C-RAN, which is coming from user mobility. We model traffic flows in a future mobile network and assess how many fewer BBUs will be needed in a C-RAN architecture compared to D-RAN to meet future user requirements.
In this paper, the energy and cost savings in C-RAN are evaluated numerically. A real case scenario is built upon the mobile traffic forecast for year 2017, a number of recommendations on traffic models and a proposed C-RAN implementation.
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