Technical–economic feasibility: LTE coverage in the 700 MHz band in the El Tambo commune

Abstract

The rural commune of El Tambo, in the province of Santa Elena, is characterized by a very marked digital divide, due to the deficient coverage of the services of mobile phone operators, which have coverage between -140 dBm and -120 dBm, making networks with 4G technology inoperable, which limits the population from developing socioeconomically. The objective of this research was to determine the technical and economic feasibility of implementing a node with LTE coverage on the 700 MHz platform. The research validation methodology combined simulations in the specialized software ATOLL (under an educational license) to design the coverage, with a financial analysis using a 15% discount rate. The technical results confirm that the proposed solution guarantees optimal coverage, with RSRP signal levels above -85 dBm, despite colocation, in the El Tambo commune and surrounding communities such as Prosperidad, La Ladrillera, and La Delicia. In the economic field, the project demonstrated a high viability and profitability index, presenting a Discounted Payback Time, TDR, of 1 year and 5 months. In contrast, the profitability was ratified with a Net Present Value, NPV, of $30217.15 and an Internal Rate of Return, IRR, of 49.81% at the end of year 2. At that time, the recovery of invested capital is resolved. It is concluded that this implementation is a technical necessity for developing community strategies and a good investment opportunity that promises a financial return significantly greater than the required risk.