Open Access

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

  • Jonghwa Kim1,
  • Deokjoo Lee2,
  • Jaekyoung Ahn3Email author,
  • Do-Seob Ahn4 and
  • Bon-Jun Ku4
EURASIP Journal on Wireless Communications and Networking20082008:596383

Received: 30 September 2007

Accepted: 6 May 2008

Published: 28 May 2008


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.


Sensitivity AnalysisEconomic AspectFull ArticlePromising TechnologyPayback

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Authors’ Affiliations

Department of Industrial Engineering, Konkuk University, Gwangjin-Gu, Seoul, South Korea
Department of Industrial Engineering, Kyunghee University, Kiheung-Gu, Yongin, South Korea
Department of Industrial & Information Systems Engineering, Seoul National University of Technology, Nowon-Gu, Seoul, South Korea
Radio and Broadcasting Research Division, Electronics and Telecommunications Research Institute, Yuseong-Gu, Daejeon, South Korea


© Jonghwa Kim et al. 2008

This article is published under license to BioMed Central Ltd. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.