Factors driving mobile network operator profitability in public safety mobile broadband projects
Bibliographic Data
| ID | 7169806 |
|---|---|
| Authors | Tapio Savunen (0009-0009-8516-0743, Aalto University, corresponding author), Juuso Toyli (University of Turku), Pekka Kekolahti (Aalto University), Petri Mähönen (0000-0001-6934-8636, Aalto University) |
| Year | 2025 |
| Volume | 49 |
| Issue | 7 |
| Pages | 102995 |
| Publication date | 2025-08-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Telecommunications Policy (JOURNAL) |
| Journal identifiers | ISSN: 0308-5961 • E-ISSN: 1879-3258 |
| Publisher | Elsevier BV (PUBLISHER) |
| DOI | 10.1016/j.telpol.2025.102995 |
| OpenAlex | W4410838223 |
| Language | EN |
| References cited | 18 |
This study examines the business aspects of mobile network operators (MNOs) in public safety communications projects using MNOs' 4G/5G networks. It analyses key factors affecting MNO profitability in public safety broadband projects, including business models, network investments, public funding, contract length, and business risks. A discounted cash flow model was used, supported by sensitivity analyses, reflecting national public safety projects in the United States and Europe. Based on public data and expert interviews, the model shows that significant public funding is essential for MNO profitability. The single-actor business model used in the United States has been shown to be more profitable than the multi-actor model used in European projects due to its broader service portfolio. Additionally, the findings illustrate how public safety projects can influence MNOs’ standard mobile business by affecting market share, with substantial implications for revenue. This study provides a financial model and recommendations to help MNOs maximise profitability in public safety projects and offers strategic guidance for government authorities in designing effective public safety procurement processes. It also presents policy recommendations to further assist with regulation. • MNOs have new business opportunities in public safety (PS) service projects. • Use of MNO networks in PS requires sizable investments in radio access networks. • PS projects need significant public funding to be profitable for MNOs. • The single-actor model is the more profitable of the two business models for MNOs. • PS services can markedly positively or negatively impact MNOs' regular business
Broadband · Broadband networks · Business · Cellular network · Industrial organization · Mobile broadband · Mobile network operator · Mobile radio · Mobile telephony · Profitability index · Telecommunications · Transport engineering · Advanced MIMO Systems Optimization · Computer Science · Engineering · ICT Impact and Policies · Power Line Communications and Noise · Finance
| Highly cited | No |
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