Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?

HAPS is a promising technology capable of providing broadband multimedia services as an alternative to the satellite communication system or terrestrial network. In this study, economic aspects of HAPS service are analyzed, HAPS services are defined, and revenues from the defined services are foreca...

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Main Authors: Jonghwa Kim, Deokjoo Lee, Jaekyoung Ahn, Do-Seob Ahn, Bon-Jun Ku
Format: Article
Language:English
Published: SpringerOpen 2008-07-01
Series:EURASIP Journal on Wireless Communications and Networking
Online Access:http://dx.doi.org/10.1155/2008/596383
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author Jonghwa Kim
Deokjoo Lee
Jaekyoung Ahn
Do-Seob Ahn
Bon-Jun Ku
author_facet Jonghwa Kim
Deokjoo Lee
Jaekyoung Ahn
Do-Seob Ahn
Bon-Jun Ku
author_sort Jonghwa Kim
collection DOAJ
description HAPS is a promising technology capable of providing broadband multimedia services as an alternative to the satellite communication system or terrestrial network. In this study, economic aspects of HAPS service are analyzed, HAPS services are defined, and revenues from the defined services are forecasted assuming nine scenarios. Capital expenditure as well as operating expenditure is estimated. To evaluate the profitability of HAPS service, the net present value (NPV), payback period, and the internal rate of return (IRR) are calculated. The results show that HAPS is economically justifiable in all the scenarios. Assuming that ARPU for the service is $35 per month in the average scenario, NPV is calculated as $2964 million, IRR becomes 31.9%, and payback occurs in 2017, which implies that HAPS service is profitable in Korea. In addition, the results of the sensitivity analysis show that the results are fairly robust.
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spelling doaj.art-9f6d60d727964480bc05fd42463712ee2022-12-22T01:53:09ZengSpringerOpenEURASIP Journal on Wireless Communications and Networking1687-14721687-14992008-07-01200810.1155/2008/596383Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?Jonghwa KimDeokjoo LeeJaekyoung AhnDo-Seob AhnBon-Jun KuHAPS is a promising technology capable of providing broadband multimedia services as an alternative to the satellite communication system or terrestrial network. In this study, economic aspects of HAPS service are analyzed, HAPS services are defined, and revenues from the defined services are forecasted assuming nine scenarios. Capital expenditure as well as operating expenditure is estimated. To evaluate the profitability of HAPS service, the net present value (NPV), payback period, and the internal rate of return (IRR) are calculated. The results show that HAPS is economically justifiable in all the scenarios. Assuming that ARPU for the service is $35 per month in the average scenario, NPV is calculated as $2964 million, IRR becomes 31.9%, and payback occurs in 2017, which implies that HAPS service is profitable in Korea. In addition, the results of the sensitivity analysis show that the results are fairly robust.http://dx.doi.org/10.1155/2008/596383
spellingShingle Jonghwa Kim
Deokjoo Lee
Jaekyoung Ahn
Do-Seob Ahn
Bon-Jun Ku
Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?
EURASIP Journal on Wireless Communications and Networking
title Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?
title_full Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?
title_fullStr Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?
title_full_unstemmed Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?
title_short Is HAPS Viable for the Next-Generation Telecommunication Platform in Korea?
title_sort is haps viable for the next generation telecommunication platform in korea
url http://dx.doi.org/10.1155/2008/596383
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