Cost model for a 5G smart light pole network

Abstract

The adoption of 5G smart light poles can facilitate the massive deployment of communications equipment in the urban environment, accelerating the advent of new smart city services. In this article, we define a cost model for a 5G smart light pole network that includes (1) four pole configurations with different hardware components, (2) a grid-based deployment structure that assigns poles to zones with different demand requirements, and (3) the evolution of key cost items due to prototype improvement, volume sale discounts, and price erosion. The model estimates the total deployment cost (TDC), including capital and operational expenses. We estimate a TDC of 4.84 M€/km2 for a minimum deployment providing uniform coverage of basic services. We also estimate a TDC of 6.57 M€/km2 for a massive deployment providing heterogeneous coverage of advanced services. These values can potentially decrease to 3.23 M€/km2 and 4.05M€/km2 when cost evolution is considered. Although more than 30 % cost reduction might be possible, this is mainly caused by the improvement of prototype components, given that public works are less sensible to cost evolution. Therefore, we recommend cities to promptly start civil works and to select upgrade-able pole designs.